Sales Compensation and Recommendations as the Fund of the Month
0
조회
0
다운로드
0
인용
0
참고문헌
키워드
초록
This study analyzes whether mutual fund distributors are more likely to recommend products with higher sales compensation to maximize their profit. The lists of the ‘fund of the month’ on their webpages are utilized from April of 2015 to August of 2015. A simple comparative analysis shows that the average sales fees and the average front-end load are significantly higher in the recommended funds among the A share class of domestic equity funds. The results of a regression analysis confirm that funds with high sales compensation levels are more likely to be recommended. This holds true for both domestic equity funds and hybrid bond funds even after controlling for fund age, fund size, and past returns.
Abstract
This study analyzes whether mutual fund distributors are more likely to recommend products with higher sales compensation to maximize their profit. The lists of the ‘fund of the month’ on their webpages are utilized from April of 2015 to August of 2015. A simple comparative analysis shows that the average sales fees and the average front-end load are significantly higher in the recommended funds among the A share class of domestic equity funds. The results of a regression analysis confirm that funds with high sales compensation levels are more likely to be recommended. This holds true for both domestic equity funds and hybrid bond funds even after controlling for fund age, fund size, and past returns.
참고문헌 (15)
- Anagol, Santosh, "Understanding the Advice of Commissions-Motivated Agents: Evidence from the Indian Life Insurance Market", Review of Economics and Statistics, 99(1), pp.1~15 (2017)
- Arrow, Kenneth J., "Uncertainty and the Welfare Economics of Medical Care", The American Economic Review, 53(5), pp.941~973 (1963)
- 반주일, "Effects of Sales Expenses and Management Expenses on Mutual Fund Performance and Flows", Asia-Pacific Journal of Financial Studies, 44(1), pp.129~173 (2015), 한국증권학회[DOI]
- Brown, Stephen J., "Measuring Security Price Performance", Journal of Financial Economics, 8(3), pp.205~258 (1980)
- 조성빈, "판매보수의 펀드투자자금과 투자성과에 대한 영향", 금융연구, 26(1), pp.75~105 (2012), 한국금융학회
- Christoffersen, Susan E. K., "What Do Consumers’Fund Flows Maximize? Evidence from Their Brokers’ Incentives", The Journal of Finance, 68(1), pp.201~235 (2013)
- Fama, Eugene F., "The Cross‐section of Expected Stock Returns", The Journal of Finance, 47(2), pp.427~465 (1992)
- Fama, Eugene F., "Common Risk Factors in the Returns on Stocks and Bonds", Journal of Financial Economics, 33(1), pp.3~56 (1993)
- Holmstrom, Bengt, "Moral Hazard in Teams", The Bell Journal of Economics, 13(2), pp.324~340 (1982)
- "Korea Financial Investment Association"[URL]
- The Market for Financial Advice: An Audit Study, "Mullainathan, Sendhil", National Bureau of Economic Research, ~, pp.No. w17929 (2012)
- Analysis on the Conflict of Interests between Financial Products Recommendation Service of Sales Channel and Retail Clients, "Oh, Yoonhae", 25~56, pp.Research Monograph, 2015-06 (2015)
- 신인석, "펀드투자 자금흐름의 결정요인: 유입자금과 유출자금은 대칭적인가?", KDI Journal of Economic Policy, 36(4), pp.33~69 (2014), 한국개발연구원[DOI]
- Siri, Erik R., "Costly Search and Mutual Fund Flows", Journal of Finance, 53(5), pp.1589~1622 (1998)
- 원승연, "펀드 판매사의 역할과 판매 보수의 적정성：한국의 주식형 펀드를 대상으로", 재무관리연구, 26(1), pp.31~64 (2009), 한국재무관리학회