Earticle

초록

영어

We investigate the factors influencing investors' decision-making in the Korean mutual fund market. Our findings indicate that investors prioritize simple signals when allocating capital to mutual funds, such as excess returns on benchmarks designated by fund rating companies or market indices like KOSPI and KOSPI200. Conversely, investors are less inclined to use sophisticated asset pricing models, including the CAPM (Capital Asset Pricing Model), Fama and French (1993) Three-factor model, and Carhart (1997) Four-factor model. Notably, institutional investors are more likely than retail investors to utilize these asset pricing models when selecting mutual funds. Our results remain robust even when accounting for observations following the Global Financial Crisis (GFC), extreme returns, and changes in fund ratings provided by rating agencies. Furthermore, we demonstrate that the weighting of time-series fund flow-performance sensitivity does not affect our conclusions. Our research suggests that in Korea's mutual fund market, investors tend to rely on straightforward indicators rather than the complex pricing models proposed by earlier studies. Importantly, our results suggest that this preference for simple indicators among retail investors is not unique to any specific country. We conclude that retail investors generally lack the level of financial literacy required to effectively use risk-adjusted performance measures.

목차

Abstract
Ⅰ. Introduction
Ⅱ. Literature review : Fund flows in the Korean mutual fund market
Ⅲ. Research Design
1. Empirical data
2. Methodology
Ⅳ. Empirical analysis
1. Which signals drive fund flow?
2. Investors sophistication
3. Robustness check
Ⅴ. Discussion
1. Alternative explanation
2. What makes investors react to simple signal?
Ⅵ. Conclusion
References
Appendix

키워드

저자

• Min-Yeon Han [ Team Leader, OCIO Advisory Team, Mirae Asset Global Investments ]
• Haemin Park [ Master's Graduate, Hanyang University Business School ]
• Moonkyung Choi [ Deputy Director, MOEL(Ministry of Employment and Labor) ]
• Hyoung-goo Kang [ Professor, Hanyang University Business School ] Corresponding Author

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  재무연구 [Asian Review of Financial Research]

• 간기

  계간

• pISSN

  1229-0351

• eISSN

  2713-6531

• 수록기간

  1988~2026

• 등재여부

  KCI 등재,SCOPUS

• 십진분류

  KDC 325 DDC 330