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Managing mutual funds or managing expense ratios? Evidence from the Greek fund industry

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Author Info

  • Babalos, Vassilios
  • Kostakis, Alexandros
  • Philippas, Nikolaos

Abstract

This study examines the expense ratio policy of Greek equity funds operating in a small emerging market with an oligopolistic, bank-dominated financial system. Constructing a unique dataset of non-publicly available expense ratios charged by these funds, we examine the impact these expenses have on funds' performance and flows. The main conclusion is that funds' performance is negatively related to their expenses, while investors' flows are not directly affected by expenses. Furthermore, the funds affiliated with one of the three dominant domestic banking groups achieve higher performance and attract higher net flows in comparison to their competitors.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Multinational Financial Management.

Volume (Year): 19 (2009)
Issue (Month): 4 (October)
Pages: 256-272

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Handle: RePEc:eee:mulfin:v:19:y:2009:i:4:p:256-272

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Web page: http://www.elsevier.com/locate/mulfin

Related research

Keywords: Mutual funds Expense ratio Emerging markets Performance attributes;

References

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Citations

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Cited by:
  1. Salganik, G., 2010. "Essays on investment flows of hedge fund and mutual fund investors," Open Access publications from Tilburg University urn:nbn:nl:ui:12-4378358, Tilburg University.
  2. Hammami, Yacine & Jilani, Faouzi & Oueslati, Abdelmonem, 2013. "Mutual fund performance in Tunisia: A multivariate GARCH approach," Research in International Business and Finance, Elsevier, vol. 29(C), pages 35-51.
  3. Babalos, Vassilios & Philippas, Nikolaos & Doumpos, Michael & Zompounidis, Constantin, 2011. "Mutual funds performance appraisal using stochastic multicriteria acceptability analysis," MPRA Paper 37953, University Library of Munich, Germany.
  4. Babalos, Vassilios & Caporale, Guglielmo Maria & Philippas, Nikolaos, 2012. "Efficiency evaluation of Greek equity funds," Research in International Business and Finance, Elsevier, vol. 26(2), pages 317-333.

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