Star Wars: The effect on fund flow due to a change in Morningstar’s star rating

Abstract: This paper examines whether a change in Morningstar’s star rating has any effect on fund flows within the Swedish mutual fund market. Using an event-­‐study approach on over 2000 Morningstar star rating changes over the period November 2009 to December 2015, we do not document statistically significant abnormal flow following a star rating change. This is in contrast to previous research within the US-­‐market.