Cross-Subsidization in Institutional Asset Management Firms

• 成果类型: Article
• 署名作者: Chaudhuri, Ranadeb; Ivkovic, Zoran; Trzcinka, Charles
• 署名单位: Oakland University; Michigan State University; Michigan State University's Broad College of Business; Indiana University System; Indiana University Bloomington
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhx075
• 发表日期: 2018
• 页码: 638
• 关键词: MUTUAL FUND FAMILIES; INVESTMENT MANAGEMENT; performance; industry; strategies; BEHAVIOR; VALUES; plans

摘要

We study cross-subsidization among U.S. equity products managed by institutional asset management firms. We find returns-based evidence consistent with both cross-subsidization receipt by strong recent performers that are relatively small in their firms and provision by products that are relatively large in their firms. Tax-exempt investors and taxable investors do not have a clear ranking by expertise, but tax-exempt investors' agency issues are more complex. Accordingly, taxable clients have more flow-performance nonlinearity and receive more (and provide less) cross-subsidization. Taxable investor flows appear more discerning, but only under the circumstances conducive to cross-subsidization, suggesting that more discerning likely means more cross-subsidized.