Returns to Scale from Labor Specialization: Evidence from Global Asset Management

58 Pages Posted: 2 Aug 2015 Last revised: 1 Sep 2022

See all articles by Mancy Luo

Mancy Luo

Erasmus University

Alberto Manconi

Bocconi University - Department of Finance; Centre for Economic Policy Research (CEPR)

David Schumacher

McGill University

Date Written: August 31, 2022

Abstract

We study human capital synergies in asset management mergers that stem from the improved ability to assign fund managers to more specialized tasks in larger firms. More specialized task assignment leads to incremental $54 million of value added per deal per year on average. The effects are concentrated in mergers that lead to a large increase in firm size and in funds whose management appears less specialized prior to the merger. Our results provide direct evidence on the role of firms in the assignment of tasks to fund managers.

Keywords: Economies of Scale, Asset Management, Labor Specialization, Human Capital Productivity

JEL Classification: G23, J24, G34

Suggested Citation

Luo, Mancy and Manconi, Alberto and Schumacher, David, Returns to Scale from Labor Specialization: Evidence from Global Asset Management (August 31, 2022). Proceedings of Paris December 2019 Finance Meeting EUROFIDAI - ESSEC, Available at SSRN: https://ssrn.com/abstract=2638658 or http://dx.doi.org/10.2139/ssrn.2638658

Mancy Luo

Erasmus University ( email )

Burgemeester Oudlaan 50,
Mandeville Building, Room T08-47,
Rotterdam, 3062PA
Netherlands

HOME PAGE: http://sites.google.com/site/mancyluofinance/

Alberto Manconi

Bocconi University - Department of Finance ( email )

Via Roentgen 1
Milano, MI 20136
Italy

HOME PAGE: http://mypage.unibocconi.eu/albertomanconi/

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

David Schumacher (Contact Author)

McGill University ( email )

1001 Sherbrooke St. W
Montreal, Quebec H3A 1G5
Canada
5143984778 (Phone)

HOME PAGE: http://www.davidschumacher.info

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