Date of Award
Summer 8-1-2023
Degree Type
Dissertation
Degree Name
Doctor of Philosophy in Business Administration (PhD)
Department
Finance
First Advisor
Dr. Vikas Agarwal
Second Advisor
Dr. Lixin Huang
Third Advisor
Dr. Baozhong Yang
Fourth Advisor
Dr. Charles Cao
Abstract
This paper provides novel evidence on the role of proximity in fund management subcontracting. I show that greater geographical proximity facilitates outsourced fund management. Specifically, increased availability of air travel leads to more subcontracting activities, improved performance of subcontracted funds, and lower subadvisory fees. I further show that air travel predicts the decision of fund management to outsource and reduces turnover of subadvisors. Finally, I find that higher air traffic helps subadvisors gain more fund management delegation from fund companies via reductions in information costs. Overall, my findings imply that air travel improves the efficiency of the fund sub-advising market.
DOI
https://doi.org/10.57709/35899351
Recommended Citation
Guo, Suiheng, "Proximity and Mutual Fund Management Outsourcing: Evidence from Air Travel Data." Dissertation, Georgia State University, 2023.
doi: https://doi.org/10.57709/35899351
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