Introduction
The purpose of the research is clearly stated in the “background” section. According to the authors, studies of investor behavior can benefit not only the parties directly involved with the segment in question but can also be effectively extended to other products and markets (Thomas and Matthews 250). In addition to improving the robustness of existing knowledge, the research may offer new insights. In particular, studying a retirement savings scheme such as KiwiSaver allows extending the findings to other fields and providing new contexts (Thomas and Matthews 251). The scheme is relatively new and, therefore, unexplored, for which reason the background of the research provided by the authors focuses on previous studies of investor behavior and principles of fund flows. With this approach, the authors aim to correlate the findings with the results of other researchers in the field, verify the relevance of the findings, and detect new insights by observing similarities and differences. Therefore, the provided background is relevant to the research study.
Literature Review
Since, according to the authors, no previous research existed on their topic at the time of the study, the literature review explores similar themes in related fields. The literature review targets two categories: investor behavior affecting fund flows and variables that can significantly alter the results. While the former evidently bears a direct relation to the research, it is only briefly covered in this section of the article, citing the findings of one previous study. The latter, on the other hand, is covered exhaustively and includes investment return, the convexity of flow, timespan factors, and search costs, among other topics. All of the variables are extensively covered and supported with exact and precise quotations from original authors that ensure complete understanding and offer justification for the methodology of the study. Finally, the authors point out several inconsistencies that suggest the need for a more in-depth inquiry. Therefore, despite scarce coverage of previous studies on the matter, the literature review can be considered moderately broad and sufficiently focused on the issue. The literature review uses a theoretical framework since it establishes the fragmentary nature of the current understanding of the problem and the lack of a unified theory (Sekaran and Bougie 80).
Research Design
The authors have chosen a simple panel data regression analysis as the method for the research. Their rationale for the choice is the suitability of the said method for describing the impact of multiple independent variables on a single dependent variable (Thomas and Matthews 253). In addition, they appeal to the extensive application of the said method in a significant number of other studies, confirming its compatibility with the formulated research questions. Since the study uses six independent variables, with each pair of hypotheses using one variable and each regression using all six independent variables, the chosen method is appropriate for the research question (Wooldridge 404). The data was collected from Kiwisaver’s annual reports, a primary source, offering several important details on expenses and fees, and is, therefore, appropriate for the research question. The methods are described in detail, and all the independent variables, dependent variables, and models for each variable are described exhaustively and summed up in tables for improved clarity. The study does not use reliability and validity tests due to the limitations of the data. The limitations of the study are based on inconsistencies in the data, such as gaps and format differences, and are accounted for in the research.
Results and Findings
The results are presented in detail, with each pair of hypotheses supported by tables illustrating the results for additional clarity. All the steps of data analysis are provided in detail and explained. The findings demonstrate a positive relationship between performance and fund flows and a negative relation between fees and fund flows, as well as between fees and member flows. These relations support the formulated hypotheses. In addition, a positive link was established between performance and outflows, which did not fit within the formulated hypotheses and required further investigation.
Discussion
The research outlined the general tendencies of investor behavior, which is useful corroboration of the existing understanding of the fund flows determinants and can be used by savings services. The findings were discussed with reference to the research question, with the exception of one relationship that was not foreseen by the research team. The results highlighted in the discussion target a specific question and therefore highlight the most important results.
Conclusion
The conclusion plainly and unambiguously covers the main points of investor behavior determinants and suggests several areas for further research, such as a fund-by-fund approach for obtaining more disaggregated data, an analysis based on the larger dataset, and location of overlooked positive relations.
Citation
All of the sources used in the article have proper in-text references and reference list entries in accordance with Harvard citation style.
Works Cited
Baltagi, Badi. The Oxford Handbook of Panel Data. Oxford University Press, 2014.
Sekaran, Uma, and Roger J. Bougie. Research Methods for Business: A Skill Building Approach. John Wiley & Sons, 2016.
Thomas, Callum, and Claire Matthews. “KiwiSaver member behaviour: a quantitative analysis.” Pacific Accounting Review, vol. 26, no. 3, 2014, pp. 248-273.
Weisberg, Sanford. Applied Linear Regression. John Wiley & Sons, 2005.
Wooldridge, Jeffrey. Introductory Econometrics: A Modern Approach. Nelson Education, 2015.