IDEAS home Printed from https://ideas.repec.org/a/bla/jfinan/v73y2018i5p2181-2227.html
   My bibliography  Save this article

Asset Management within Commercial Banking Groups: International Evidence

Author

Listed:
  • MIGUEL A. FERREIRA
  • PEDRO MATOS
  • PEDRO PIRES

Abstract

We study the performance of equity mutual funds run by asset management divisions of commercial banking groups using a worldwide sample. We show that bank‐affiliated funds underperform unaffiliated funds by 92 basis points per year. Consistent with conflicts of interest, the underperformance is more pronounced among those affiliated funds that overweight the stock of the bank's lending clients to a great extent. Divestitures of asset management divisions by banking groups support a causal interpretation of the results. Our findings suggest that affiliated fund managers support their lending divisions’ operations to reduce career concerns at the expense of fund investors.

Suggested Citation

  • Miguel A. Ferreira & Pedro Matos & Pedro Pires, 2018. "Asset Management within Commercial Banking Groups: International Evidence," Journal of Finance, American Finance Association, vol. 73(5), pages 2181-2227, October.
    • Handle: RePEc:bla:jfinan:v:73:y:2018:i:5:p:2181-2227
    DOI: 10.1111/jofi.12702
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jofi.12702
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jofi.12702?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jfinan:v:73:y:2018:i:5:p:2181-2227. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/afaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.