Scale and Skill in Mutual Fund Management: Evidence from Norway

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Markus Snøve Høiberg  1
Oslo Business School, Oslo Metropolitan University Norway 1
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SEIJOM VOL3 NO4
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Submitted: 02-04-2020
Published: 01-06-2020
DOI: 10.33215/sjom.v3i4.351
Keywords:
Mutual fund performance mutual fund scale managerial skill economies of scale
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Abstract

Using a sample free of survivorship bias and several risk-adjusted performance benchmarks to identify effects of scale on mutual fund performance in the Norwegian market, I find mixed evidence that both large and small funds underperform as against the middle-sized funds in the period 2005-2018. Controlling for relevant factors in panel data regressions, I find that, on average, performance worsens with an increase in size while giving support to initial findings of nonlinearity. The relationship is most robust after 2013 and seems to be affected by competition in the market as well as fund inflows. I do not find any empirical evidence to support the liquidity hypothesis.

Article Details

Høiberg, M. S. . (2020). Scale and Skill in Mutual Fund Management: Evidence from Norway. SEISENSE Journal of Management, 3(4), 1-20. https://doi.org/10.33215/sjom.v3i4.351
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Copyright (c) 2020 Markus Snøve Høiberg

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