Antecedents of equity fund performance: a contingency perspective

Journal Publication ResearchOnline@JCU
Liu, Li Xian;Jiang, Fuming;Li, Jizhong;Farooque, Omar Al
Abstract

While the fund performance management literature has clearly documented that the fund size, fund family size, and net cash flow are important antecedents of equity fund performance, prior empirical studies have revealed mixed results that have not been adequately explained. Through the lens of the contingency perspective, we developed a conceptual model that examines how the expense ratio and management compensation as contextual factors interact with the fund size, fund family size, and net cash flow to affect equity fund performance. The empirical analyses were based on panel data including 690 equity funds in China over a 7-year period from 2009–2015. The results show that the expense ratio and management compensation moderate the effects of the fund family size and net cash flow on fund performance, and management compensation also moderates the relationship between the fund size and fund performance.

Journal

Review of Pacific Basin Financial Markets and Policies

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Volume

24

ISBN/ISSN

1793-6705

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Issue

1

Pages Count

43

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Publisher

World Scientific

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EISSN

N/A

DOI

10.1142/S0219091521500065