Date of Award

Summer 8-1-2023

Degree Type


Degree Name

Doctor of Philosophy in Business Administration (PhD)



First Advisor

Dr. Vikas Agarwal

Second Advisor

Dr. Lixin Huang

Third Advisor

Dr. Baozhong Yang

Fourth Advisor

Dr. Charles Cao


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.

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