BIROn - Birkbeck Institutional Research Online

Relative performance, risk and entry in the mutual fund industry

Loranth, G. and Sciubba, Emanuela (2006) Relative performance, risk and entry in the mutual fund industry. The B.E. Journal of Economic Analysis & Policy 6 (1), p. 19. ISSN 1935-1682.

Full text not available from this repository.

Abstract

This paper analyses the impact of the emergence of new funds on the portfolio decisions of mutual fund managers who are evaluated on the basis of relative performance within a dynamic model. Recent theoretical literature has pointed to the inefficiencies in portfolio selection caused by relative performance evaluation of fund managers. We find that the on-going process of creation of new funds, by posing an entry threat to the incumbent fund managers, greatly alleviates these inefficiencies. Hence the transitory market structure that characterises the mutual fund industry could explain why relative performance evaluation is widely in use.

Metadata

Item Type: Article
School: Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School
Depositing User: Sarah Hall
Date Deposited: 27 Jul 2020 16:21
Last Modified: 02 Aug 2023 18:01
URI: https://eprints.bbk.ac.uk/id/eprint/32689

Statistics

6 month trend
0Downloads
6 month trend
243Hits

Additional statistics are available via IRStats2.

Archive Staff Only (login required)

Edit/View Item
Edit/View Item