Earticle

초록

영어

We estimate investors' attention level to mutual fund fees based on a parsimonious asset allocation model with limited attention in an experimental setting. We find that, on average, investors allocate 62.5% of their full attention to mutual fund fees. We also find that cognitive ability is an important factor in determining investors' attention to the fees. The estimated attention level implies investors in the U.S. mutual funds market pay $16 billion more in fees per year than the level they recognize. We evaluate policy options to increase attention to fees and find that the policy effectiveness may depend on one's cognitive ability.

목차

Abstract
1. Introduction
2. Experiment design and procedures
2.1. Estimating attention level to mutual fund fees based on portfolio allocation decisions
2.2. Experiment design
2.3. Implementation procedure of the experiment
3. Empirical analysis and results
3.1. Descriptive statistics
3.2. Cognitive ability and attention level to mutual fund fees
3.3. Price complexity and attention level to mutual fund fees
3.4. Robustness check
4. Conclusion
Appendix: Variable descriptions
References

키워드

저자

• Hugh H. Kim [ Darla Moore School of Business, University of South Carolina ]
• Wenhao Yang [ Darla Moore School of Business, University of South Carolina ]

참고문헌

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간행물

표지보기 관심저널 등록

• 간행물명

  한국재무학회 학술대회

• 간기

  부정기

• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330