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Decisions of domestic equity fund investors: determinants and search costs

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  • Luis Ferruz
  • Cristina Ortiz
  • Jose Sarto

Abstract

In the present study, we confirm the asymmetry of the performance-flow relationship documented in the literature, but with the particularities of the sample of Spanish funds. Thus, we conclude that mid-performers show no significant influence on investor decisions. The panel data analysis also allows us to conclude that custodial and management fees and the size of the fund have a negative impact on the flows into funds. Empirical evidence is provided on the differential response of investors to the decision factors depending on the market states.

Suggested Citation

  • Luis Ferruz & Cristina Ortiz & Jose Sarto, 2009. "Decisions of domestic equity fund investors: determinants and search costs," Applied Financial Economics, Taylor & Francis Journals, vol. 19(16), pages 1295-1304.
    • Handle: RePEc:taf:apfiec:v:19:y:2009:i:16:p:1295-1304
    DOI: 10.1080/09603100802584862
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    References listed on IDEAS

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    3. Carmen Pilar Martí Ballester, 2014. "Determinants of equity pension plan flows," Estudios de Economia, University of Chile, Department of Economics, vol. 41(1 Year 20), pages 125-148, June.

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