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Equity funds in emerging Asia: Does size matter?

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  • Ding, Haoyuan
  • Zheng, Huanhuan
  • Zhu, Chenqi

Abstract

Applying a novel data set that covers the emerging Asia equity funds over a period from 2003 to 2009 at weekly frequency, we provide evidence of the existence of a U-shaped relationship between fund size and performance. Moreover, we find that (i) the size-performance relation is highly dependent on targeted investment markets. Using an endogenous regime switching model, we provide evidence of the different shapes (U-shaped and inverted U-shape) of size-performance relations for funds targeted at two types of countries (developing and newly advanced countries); (ii) the significant size-performance relation only comes from the non-crisis period.

Suggested Citation

  • Ding, Haoyuan & Zheng, Huanhuan & Zhu, Chenqi, 2015. "Equity funds in emerging Asia: Does size matter?," International Review of Economics & Finance, Elsevier, vol. 35(C), pages 149-165.
    • Handle: RePEc:eee:reveco:v:35:y:2015:i:c:p:149-165
    DOI: 10.1016/j.iref.2014.09.012
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    2. Mamatzakis, Emmanuel & Xu, Bingrun, 2016. "Managerial attributes and equity mutual fund performance: evidence from china," MPRA Paper 76139, University Library of Munich, Germany.

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    More about this item

    Keywords

    Fund size; Size–performance relationship; Investment markets; Credit crunch;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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