Does Fund Size Erode Performance? Liquidity, Organizational Diseconomies and Active Money Management
By Joseph Chen, Harrison G. Hong, Ming-hsiang Huang, Jeffrey D. Kubik. 2003
121 citations recorded by the source corpus.
Subfields: Accounting, Finance
View Paper: https://www.semanticscholar.org/paper/9126f5c331cbeb67b3618b6139af62ccf128dc28
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Citations in the corpus
- The Determinants of Mutual Fund Performance: A Cross-Country Study (2013, unknown): “Moreover, larger mutual fund managers must necessarily trade larger volumes of stock, calling the attention of other market participants and therefore suffer higher price impact costs (Chen et al. (2004) name this effect the liquidity hypothesis). Grinblatt and Titman (1989) and Grinblatt and Titman”
- Liquidity, Investment Style, and the Relation between Fund Size and Fund Performance (2008, methodology): “Overall, consistent with Chen et al. (2004), I find strong and robust evidence of an inverse relation between fund size and fund performance.”
- Intermediated Investment Management (2011, unknown): “5 million, which matches the fund size in the median quintile of Chen et al. (2004). For the wealth distribution parameter k, we utilize the interval k ∈ [1.”
- Unobserved Actions of Mutual Funds (2008, unknown): “3 See, for example, Brown, Harlow, and Starks (1996), Chevalier and Ellison (1997), Carhart, Kaniel, Musto, and Reed (2002), Gaspar, Massa, and Matos (2006), Meier and Schaumburg (2004), Nanda, Wang, and Zheng (2004), and Davis and Kim (2007).”
- Does Media Coverage of Stocks Affect Mutual Funds' Trading and Performance? (2014, unknown): “Chen et al. (2004) indicate that smaller funds tend to outperform larger funds because of diseconomies of scale in the fund management industry. Cremers and Petajisto (2009) show that funds that deviate most from their benchmark indexes outperform their benchmarks, both before and after expenses. 4 ”