Outsourcing in the International Mutual Fund Industry: An Equilibrium View

• 成果类型: Article
• 署名作者: Chuprinin, Oleg; Massa, Massimo; Schumacher, David
• 署名单位: University of New South Wales Sydney; INSEAD Business School; McGill University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12259
• 发表日期: 2015
• 页码: 2275-2308
• 关键词: cross-section; stock returns; performance; CONTRACTS; RISK

摘要

We study outsourcing relationships among international asset management firms. We find that, in companies that manage both outsourced and in-house funds, in-house funds outperform outsourced funds by 0.85% annually (57% of the expense ratio). We attribute this result to preferential treatment of in-house funds via the preferential allocation of IPOs, trading opportunities, and cross-trades, especially at times when in-house funds face steep outflows and require liquidity. We explain preferential treatment with agency problems: it increases with the subcontractor's market power and the difficulty of monitoring the subcontractor, and decreases with the subcontractor's amount of parallel in-house activity.