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The efficiency of Spanish mutual funds companies: A slacks-based measure approach

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  • Carlos Sánchez-González

    ()
    (Department of Accounting and Finance, Faculty of Economics and Business Studies, Universidad de Zaragoza)

  • José Luis Sarto

    ()
    (Department of Accounting and Finance, Faculty of Economics and Business Studies, Universidad de Zaragoza)

  • Luis Vicente

    ()
    (Department of Accounting and Finance, Faculty of Economics and Business Studies, Universidad de Zaragoza)

Abstract

This paper is the first analysis of the efficiency of Mutual Funds companies in Europe. Based on the recent approach of Holod and Lewis (2011), our paper overcomes some of the potential limitations of the DEA methodology by applying the variations to the slacks-based measure (Tone, 2010). Our fund-company model questions the significant role of the portfolio management activities of the company in the distribution results and therefore in the final profits obtained by the company shareholders. Finally, the application of SBM Variation III finds several globally inefficient but locally efficient companies according to standardized size of competitors.

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Bibliographic Info

Paper provided by Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza in its series Documentos de Trabajo with number dt2013-01.

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Date of creation: Jan 2013
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Handle: RePEc:zar:wpaper:dt2013-01

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Keywords: Mutual funds companies; Efficiency; DEA; SBM; Sub-Stages approach;

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