Scale and skills in European active management: Impact of a new regulatory context - Archive ouverte HAL Accéder directement au contenu
Article Dans Une Revue Journal of Banking and Finance Année : 2023

Scale and skills in European active management: Impact of a new regulatory context

Résumé

This study examines the impact of a new regulatory context on the dynamics and nature of returns to scale in European active management. Using a sample of 1325 actively managed European equity funds and following Pastor, Stambaugh, and Taylor’s model from 2015, we find strong evidence of industry-level decreasing returns to scale. We also find that the new regulatory context creates structural breaks in the optimal scale that significantly change the size-performance relationship. We find strong support that emerging and small-cap funds allow increasing returns to scale. We find evidence that fund families play a moderating role in decreasing returns to scale. Further, the results show a significant upward trend in fund skills evolution.
Fichier non déposé

Dates et versions

hal-04197518 , version 1 (06-09-2023)

Identifiants

Citer

Veasna Khim, Hery Razafitombo. Scale and skills in European active management: Impact of a new regulatory context. Journal of Banking and Finance, 2023, 154, pp.106963. ⟨10.1016/j.jbankfin.2023.106963⟩. ⟨hal-04197518⟩
47 Consultations
0 Téléchargements

Altmetric

Partager

Gmail Mastodon Facebook X LinkedIn More