Internet search query and the cash flow of mutual fund

• Main Authors: Ya-Chung Huang, 黃雅群
• Other Authors: Chen Miao Lin
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/08266454283640929331

碩士 === 國立中山大學 === 財務管理學系研究所 === 101 === This study investigates the relation between mutual fund cash flows and investor behavior of internet search queries as well as the relation between mutual fund cash flows and advertising. The investor behavior that searches queries on the internet initiatively captures the initiative effect of investor attention, while passively receiving advertising information of funds captures the passive effect of investor attention. However, prior studies examine the impact of advertising on mutual fund cash flows. This paper proposes to measure both initiative and passive effect of investor attention by using search volume index (SVI) and mutual fund advertising in order to examine the relation between both investor attention effect and mutual fund cash flows. The empirical results show that the search volume index can significantly increase the mutual fund cash flows, while an increase in advertising can enhance the positive relation between the search volume index and mutual fund cash flows. Moreover, considering the effect of investor sentiment on purchase and redemption decisions of investors, this study separated investor sentiment into high and low groups. We find that when investor sentiment is high, the effect of search volume index is positively significant on mutual fund net inflow. On the other hand, when investor sentiment is low, the mutual fund net outflow significantly increases if search volume index increase, while advertising significantly reduces the fund net outflow. Keywords: Internet search query, initiative effect, passive effect, advertising, SVI