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Purchase and Redemption Decisions of Mutual Fund Investors of Variable Life Insurance-Using Quantile Regression

Author

Listed:
  • Nan-Yu Wang

    (Department of Business and Tourism Planning, Ta Hwa University of Science and Technology, Hsinchu, Taiwan.)

  • Sen-Sung Chen

    (Department of risk Management and Insurance, Feng-Chia University, Taichang, Taiwan.)

  • Chih-Jen Huang

    (Department of Finance, Providence University, Taiwan.)

  • Cheng-Hsin Yen

    (Department of risk Management and Insurance, Feng-Chia University, Taichang, Taiwan.)

Abstract

We identified the relationship between purchase and redemption behavior of flow-return and flow-fund characteristics within different group investors by using Quantile regression, we found that insured investors have reflect better performance than non-insured investor in our study. However, there is no significant difference between non-insured investor' purchase behavior and performance. In addition, regarding fund characteristics, the relationship between insured investors and fund expense ratios was stronger than it was among the noninsured investors. Low expense ratios attract new investors because of improvements in performance, which indirectly enhances the sensitivity of the relationship between fund flows and performance when performance is strong.

Suggested Citation

  • Nan-Yu Wang & Sen-Sung Chen & Chih-Jen Huang & Cheng-Hsin Yen, 2014. "Purchase and Redemption Decisions of Mutual Fund Investors of Variable Life Insurance-Using Quantile Regression," International Journal of Economics and Financial Issues, Econjournals, vol. 4(4), pages 714-725.
    • Handle: RePEc:eco:journ1:2014-04-03
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Variable Policies; Mutual Funds; Fund Performance; Investment Behavior; Quantile Regression;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • G2 - Financial Economics - - Financial Institutions and Services
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration

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