@article{37d15918f1354b8e85b47a0850dad6bd,
title = "Internet search, fund flows, and fund performance",
abstract = "This study uses the Google search volume index as a direct measure of investor attention to explore the connection between attention-grabbing information and fund flows, future performance, and the survivorship of newly issued funds. We find that investors often engage in attention-driven purchases of new funds that have captured their attention online. However, fund investors who conduct internet searches and make attention-driven purchases are less sophisticated and fail to allocate their capital for earning abnormal returns. We also find that attention-induced inflows can help sustain new funds in competitive fund markets via potential mitigation of mergers and liquidations. Our robustness checks show similar results for old funds, but attention-driven fund flows do not enhance the survival of old funds.",
keywords = "Fund flows, Fund performance, Google Trends, Internet search, Search volume index",
author = "Chen, {Hong Yi} and Chen, {Hsuan Chi} and Lai, {Christine W.}",
note = "Funding Information: We thank Geert Bekaert (the Managing Editor) and three anonymous referees for many helpful comments. We also appreciate helpful comments from Zhan-Hui Chen, Lauren H. Cohen, Chun-Yang Hwang, Cheng-Few Lee, as well as seminar participants at National Taiwan University, National Chengchi University, the 2017 FMA Asia Pacific Conference, 2016 Financial Management Association Annual Meeting, the 10th NCTU International Finance Conference, the 24th SFM Conference 2016, the 11th Biennial Conference Asian Consumer and Family Economics Association, the 23rd Annual Conference on Pacific Basin Finance, Economics, Accounting, and Management, 2016 International Conference of Taiwan Finance Association. Hsuan-Chi Chen gratefully acknowledges support from the Anderson School of Management at the University of New Mexico. Christine W. Lai gratefully acknowledges financial support from National Science Council in Taiwan for awarding the Grant 106-2410-H-003-009 -MY2, 108-2410-H-003-033 -MY2. Publisher Copyright: {\textcopyright} 2021",
year = "2021",
month = aug,
doi = "10.1016/j.jbankfin.2021.106166",
language = "English",
volume = "129",
journal = "Journal of Banking and Finance",
issn = "0378-4266",
publisher = "Elsevier",
}