Marketing and Fund Flows:Evidence from Chinese Open-ended Funds
利用2005-2010年中国开放式基金数据，研究发现基金营销努力（如增加销售机构、网点和代表）能显著提升资金净流入，且上一年收益为负的基金下一年会大幅增加营销投入。
Using open - ended funds data in China from 2005 - 2010,this paper examines the effects of funds marketing on funds cash flows.Consistent with the explanation that marketing efforts can affect sales,we find that funds' marketing efforts can have significant effects on fund flows.Funds with more sales institutions,sales outlets and sales representatives have higher net fund flows.In particular,for each 10%increase in marketing efforts(sales institutions,outlets and representatives),net flows of funds increase by 1.1 - 1.6%,and fund sizes increase by 0.5%.Further analysis indicates that funds with negative returns in the prior year will significantly increase their marketing efforts by adding more sales institutions,sales outlets and sales representatives in the next year,on average an increase of 14 -60%in market efforts,than funds with positive returns in the prior year.Our research provides excess - marketing as an explanation to thehigh fees but low performancephenomenon among mutual funds in China.