Size does not matter: Diseconomies of scale in the mutual fund industry revisited

B-Tier
Journal: Journal of Banking & Finance
Year: 2018
Volume: 88
Issue: C
Pages: 357-365

Authors (3)

Phillips, Blake (not in RePEc) Pukthuanthong, Kuntara (not in RePEc) Rau, P. Raghavendra (University of Cambridge)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The academic literature has found mixed evidence that fund size is negatively related to performance. One reason for the lack of consensus may be that the fund size and performance relation is endogenous. In this paper, we identify a set of instrumental variables that influence fund size but are unrelated to expected fund performance. Using this specification, we show that fund size does not appear to affect fund performance.

Technical Details

RePEc Handle
repec:eee:jbfina:v:88:y:2018:i:c:p:357-365
Journal Field
Finance
Author Count
3
Added to Database
2026-01-29