Global Tournaments

25 Pages Posted: 7 Sep 2021 Last revised: 20 Feb 2024

See all articles by Javier Vidal-García

Javier Vidal-García

Complutense University of Madrid; Harvard University

Marta Vidal

Universidad Europea de Madrid; Universidad Complutense de Madrid (UCM)

Date Written: February 4, 2024

Abstract

We examine whether funds that lag performance around the world increase their risk exposure to improve performance with the intention that larger returns will attract new capital inflow and will boost the fund manager´s fees. Previous research confirmed that underperforming funds increased their risk to improve performance, the aim of this paper is to examine whether using daily returns this phenomenon holds around the world. The major problem of employing monthly observations to measure risk on an annual basis is that insufficient data prevents adequate evaluations, to address this issue we use a large sample of daily returns for funds in 35 countries around the world over the 1990-2023 period.

Keywords: Mutual Funds; Tournaments; Portfolio Management; Fund Performance.

JEL Classification: G11, G12.

Suggested Citation

Vidal-García, Javier and Vidal-García, Javier and Vidal, Marta, Global Tournaments (February 4, 2024). Available at SSRN: https://ssrn.com/abstract=3917545 or http://dx.doi.org/10.2139/ssrn.3917545

Javier Vidal-García (Contact Author)

Complutense University of Madrid ( email )

School of Business Administration
Somosaguas Campus
Madrid, Madrid 28223
Spain

Harvard University ( email )

1875 Cambridge Street
Cambridge, MA 02138
United States

Marta Vidal

Universidad Europea de Madrid ( email )

Villaviciosa de Odón
Madrid, 28670
Spain

Universidad Complutense de Madrid (UCM) ( email )

Somosaguas Campus
Madrid, 28223
Spain

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