Information Sharing and Sustainable Growth: Evidence from the US Mutual Fund Family

Family competition via divergence in the trading of funds

“…Note that a high value of intra-family TD level indicates that the trading decisions within the family are not very coordinated and then, we assume a competitive environment in the family. However, there are also several authors who highlight the significantly positive effect of the cooperation environment on performance because fund decisions' coordination within families allows to take advantages of the family resources and maximize its value (Elton et al, 2007;Fu et al, 2021). Hence, we also studied the influence of the difference between the inter-and intra-family TD levels when the intra-family TD was low to isolate those fund families with a cooperative environment.…”

“…Several authors also highlight the significantly positive effect of the cooperative environment on performance because coordinating decisions within fund families allows them to take advantage of their resources (Elton et al, 2007;Fu et al, 2021). However, it is important to note that within those families with a low intra-family TD level, it is different to have a high or low level of inter-family TD.…”