scholarly journals Does Fund Size Erode Mutual Fund Performance? The Role of Liquidity and Organization

2003 ◽  
Author(s):  
Joseph S. Chen ◽  
Harrison G. Hong ◽  
Ming Huang ◽  
Jeffrey D. Kubik
Keyword(s):  
Mutual Fund ◽  
Fund Performance ◽  
Mutual Fund Performance ◽  
Fund Size

scholarly journals Does Fund Size Erode Mutual Fund Performance? The Role of Liquidity and Organization

2004 ◽  
Vol 94 (5) ◽  
pp. 1276-1302 ◽  
Author(s):  
Joseph Chen ◽  
Harrison Hong ◽  
Ming Huang ◽  
Jeffrey D Kubik
Keyword(s):  
Mutual Fund ◽  
Scale Effects ◽  
Fund Performance ◽  
The Family ◽  
Before And After ◽  
Performance Benchmarks ◽  
Using Data ◽  
Or Team ◽  
Fund Size

We investigate the effect of scale on performance in the active money management industry. We first document that fund returns, both before and after fees and expenses, decline with lagged fund size, even after accounting for various performance benchmarks. We then explore a number of potential explanations for this relationship. This association is most pronounced among funds that have to invest in small and illiquid stocks, suggesting that these adverse scale effects are related to liquidity. Controlling for its size, a fund's return does not deteriorate with the size of the family that it belongs to, indicating that scale need not be bad for performance depending on how the fund is organized. Finally, using data on whether funds are solo-managed or team-managed and the composition of fund investments, we explore the idea that scale erodes fund performance because of the interaction of liquidity and organizational diseconomies.

scholarly journals Factors affecting equity mutual fund performance: evidence from Indonesia

2018 ◽  
Vol 15 (1) ◽  
pp. 1-9 ◽  
Author(s):  
Gusni ◽  
Silviana ◽  
Faisal Hamdani
Keyword(s):  
Mutual Fund ◽  
Panel Data Analysis ◽  
Market Timing ◽  
Fund Performance ◽  
Mutual Fund Performance ◽  
Stock Selection ◽  
Factors Affecting ◽  
Investment Manager ◽  
Fund Size ◽  
Equity Mutual Fund

The evaluation of equity mutual fund performance and identification factors that affect mutual fund performance is of great interest to an investor in Indonesia. This study investigates the performance of equity mutual fund by using risk-adjusted performance proposed by Treynor (1965) and examines factors affecting mutual fund performance by using the ability of investment manager (market timing and stock selection skill), fund size, and inflation. To achieve the objectives of this study, a total of 19 equity mutual funds was selected using purposive sampling method from the period from 2011 to 2015. A panel data analysis method has been used to analyze the effect of those factors on the equity mutual fund performance. The result showed that equity mutual fund performance tends to fluctuate in Indonesia. Equity mutual fund performance influenced by stock selection skill and inflation, meanwhile, market timing skill and fund size have no significant effect on the equity mutual fund performance.

scholarly journals The Effect of Market Timing Ability and Fund Size on Mutual Fund Performance of Mutual Fund Companies in Indonesia

2020 ◽  
Vol 5 (1) ◽  
pp. 45
Author(s):  
Mochammad Arif Budiono ◽  
Musdalifah - Azis
Keyword(s):  
Mutual Fund ◽  
Financial Services ◽  
Market Timing ◽  
Total Sample ◽  
Fund Performance ◽  
Mutual Fund Performance ◽  
Timing Ability ◽  
Equity Funds ◽  
Negative Effect ◽  
Fund Size

<p align="justify"><em>This study aims to analyze the effect of market timing ability and fund size of mutual funds on the performance of equity funds. This research was conducted at a mutual fund company registered in the Financial Services Authority (OJK) 2018-2019 period. This study uses purposive sampling with a total sample of 65 mutual fund shares. The type of data used is quantitative data and data sources in the form of company annual financial statements. Data analysis tools used are descriptive statistics and panel data regression. The results of this study indicate that the market timing ability has a significant positive effect on the mutual fund performance and the fund size has a significant negative effect on the mutual fund performance.</em></p>

scholarly journals Corporate ownership and mutual fund performance: evidence from Taiwan

2008 ◽  
Vol 5 (4) ◽  
pp. 128-134 ◽  
Author(s):  
Chun-An Li ◽  
Hung-Cheng Lai
Keyword(s):  
Mutual Fund ◽  
Negative Relationship ◽  
Fund Performance ◽  
Board Members ◽  
Mutual Fund Performance ◽  
Corporate Ownership ◽  
Foreign Institutional Investors ◽  
Institutional Shareholders ◽  
The Relationship

We examine the relationship between corporate ownership and fund performance in Taiwan. Using the panel regression after controlling for fund attributes, the proportional share held by foreign institutional investors is positively correlated with fund performance. Furthermore, we also find a negative relationship between the number of board members and the return gap measure of fund performance, but ownership concentration are not effect on fund performance. Our results imply that foreign institutional shareholders are now playing a significant monitoring role of fund companies in Taiwan

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