Fund Expenses and Vertical Structures of the Fund Industry

Title
Fund Expenses and Vertical Structures of the Fund Industry
Authors
한재준
Keywords
Fund expenses Vertical structures of fund industry Switching costs of customers Distribution channels Asset management companies Raising rival's costs
Issue Date
2013
Publisher
ECONOMIC MODELLING
Series/Report no.
ECONOMIC MODELLING ; Vol35 Startpage 856 Endpage 864
Abstract
This paper provides a theoretical model on the determination of fund expenses, focusing on vertical structures of the fund industry and customer switching costs. We also empirically test our theoretical findings using data from the Korean fund market. Our first theoretical finding is that a distribution channel that is integrated with an asset management company has an incentive to charge higher distribution fees than an independent channel: a vertically integrated distribution channel tends to raise the costs of rival asset management companies. Our second finding is that the equilibrium is asymmetric in certain circumstances: a channel may want to remain independent, whereas the other wants to be vertically integrated with an asset management company. Our empirical analysis showed evidence supporting the first theoretical prediction.
URI
http://dx.doi.org/10.1016/j.econmod.2013.08.033
http://dspace.inha.ac.kr/handle/10505/33575
ISSN
0264-9993
Appears in Collections:
College of Business Administration (경영대학) > Global finance and banking(글로벌금융학) > Journal Papers, Reports(글로벌금융학 논문, 보고서)
Files in This Item:
35716.pdfDownload

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.

Browse