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Scale and Skill in Mutual Fund Management: Evidence from Norway

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  • Markus Snøve HøibergORCID iD verified by the author (show author details)

    Markus Snøve Høiberg

    Oslo Business School, Oslo Metropolitan University Norway, Norway

    0000-0001-9997-091X

    Corresponding author

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Høiberg, M. S. . (2020). Scale and Skill in Mutual Fund Management: Evidence from Norway. SEISENSE Journal of Management, 3(4), 1-20. https://doi.org/10.33215/sjom.v3i4.351

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Abstract

Using a sample free of survivorship bias and several risk-adjusted performance benchmarks to identify effects of scale on mutual fund performance in the Norwegian market, I find mixed evidence that both large and small funds underperform as against the middle-sized funds in the period 2005-2018. Controlling for relevant factors in panel data regressions, I find that, on average, performance worsens with an increase in size while giving support to initial findings of nonlinearity. The relationship is most robust after 2013 and seems to be affected by competition in the market as well as fund inflows. I do not find any empirical evidence to support the liquidity hypothesis.

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Copyright (c) 2020 Markus Snøve Høiberg

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Vol. 3 No. 4 (2020): SEISENSE Journal of Management View Issue

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2025-122026-11

Article history

  1. ReceivedApril 2, 2020
  2. AcceptedMay 20, 2020
  3. Published June 1, 2020

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