Size and Performance of Chinese Mutual Funds: The Role of Economy of Scale and Liquidity
نویسندگان
چکیده
Using detailed stockholding for a comprehensive sample of Chinese mutual funds from 2004 to 2009, we investigate the economy of scale and liquidity on the relation between fund size and performance. We find that there exists an inverted U-shape relation between fund size and performance accounting for various performance benchmarks. Both economy of scale and liquidity exist and play an important role to Chinese mutual funds, and their combination can explain reasonably well the inverted U-shape between size and performance discovered in this paper. JEL classification: G23
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