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Global tournaments

Author

Listed:
  • Javier Vidal-García

    (Complutense University of Madrid)

  • Marta Vidal

    (Universidad Europea de Madrid)

  • Laura Molero González

    (University of Almería)

  • Juan E. Trinidad-Segovia

    (University of Almería)

Abstract

We examine whether funds that lag performance around the world increase their risk exposure to improve performance with the intention that larger returns will attract new capital inflow and boost the fund manager´s fees. Previous research confirmed that underperforming funds increased their risk to improve performance, the aim of this paper is to examine whether this phenomenon holds around the world using daily returns. The major problem of employing monthly observations to measure risk on an annual basis is that insufficient data prevent adequate evaluations, to address this issue we use a large sample of daily returns for funds in 35 countries around the world over the 1990–2023 period.

Suggested Citation

  • Javier Vidal-García & Marta Vidal & Laura Molero González & Juan E. Trinidad-Segovia, 2025. "Global tournaments," Risk Management, Palgrave Macmillan, vol. 27(1), pages 1-13, February.
    • Handle: RePEc:pal:risman:v:27:y:2025:i:1:d:10.1057_s41283-024-00157-1
    DOI: 10.1057/s41283-024-00157-1
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Mutual funds; Tournaments; Portfolio management; Fund performance;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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