Empirical investigation of the relationship between Google search volume index and mutual fund performance and flows: evidence from Norway
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We investigate the relationship between Google search volume index (SVI) and Norwegian mutual fund performance and flows. We use abnormal SVI (ASVI) and relative fund flows as measures of investor attention. The aim of this thesis is twofold, we focus on past performance as a determinant of investor attention measured by ASVI, and past performance and investor attention as determinants of mutual fund flows. Our results show that performance can predict ASVI, inflows, outflows, and net flows. ASVI can predict inflows and net flows but not outflows. Interestingly, high performance has positive impact not only on inflows but also on outflows. On average, simple returns attract investor`s attention more than risk-adjusted performance measures and long-term performance is more important than short-term performance.
Master's thesis in Applied finance