Industry Competition and Performance Persistence in Brazilian Equity Mutual Funds
The Brazilian mutual fund industry, despite having a high increase in net worth, is concentrated around a few large administrators. Therefore, it is worth questioning the extent to which this level of concentration can affect the performance delivered to the shareholders, as greater concentration im...
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| Format: | Article |
| Language: | English |
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FUCAPE Business School
2022-01-01
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| Series: | BBR: Brazilian Business Review |
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| Online Access: | http://www.redalyc.org/articulo.oa?id=123071410003 |
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| author | Sabrina Espinele da Silva Leticia Fernandes Pereira Simone Evangelista Fonseca Robert Iquiapaza |
| author_facet | Sabrina Espinele da Silva Leticia Fernandes Pereira Simone Evangelista Fonseca Robert Iquiapaza |
| author_sort | Sabrina Espinele da Silva |
| collection | DOAJ |
| description | The Brazilian mutual fund industry, despite having a high increase in net worth, is concentrated around a few large administrators. Therefore, it is worth questioning the extent to which this level of concentration can affect the performance delivered to the shareholders, as greater concentration implies less competition. In this way, this research aimed to analyze the impact of market competition on the performance persistence of equity mutual funds in Brazil. Using a sample of free portfolio equity investment funds from 2010 to 2019, the main results point to the existence of performance persistence for Brazilian free portfolio equity funds. Furthermore, they pointed out a positive and statistically significant relationship between the level of competition and the performance of funds, as well as in the interaction between competition and performance persistence. Consequently, indicating that, funds with greater performance persistence tend to maintain this persistence even in the face of greater industry competition. |
| format | Article |
| id | doaj-art-3abfb122241a44f78e5b5699e4db398d |
| institution | Kabale University |
| issn | 1807-734X |
| language | English |
| publishDate | 2022-01-01 |
| publisher | FUCAPE Business School |
| record_format | Article |
| series | BBR: Brazilian Business Review |
| spelling | doaj-art-3abfb122241a44f78e5b5699e4db398d2025-02-06T23:39:33ZengFUCAPE Business SchoolBBR: Brazilian Business Review1807-734X2022-01-0119326828710.15728/bbr.2022.19.3.3.enIndustry Competition and Performance Persistence in Brazilian Equity Mutual FundsSabrina Espinele da SilvaLeticia Fernandes PereiraSimone Evangelista FonsecaRobert IquiapazaThe Brazilian mutual fund industry, despite having a high increase in net worth, is concentrated around a few large administrators. Therefore, it is worth questioning the extent to which this level of concentration can affect the performance delivered to the shareholders, as greater concentration implies less competition. In this way, this research aimed to analyze the impact of market competition on the performance persistence of equity mutual funds in Brazil. Using a sample of free portfolio equity investment funds from 2010 to 2019, the main results point to the existence of performance persistence for Brazilian free portfolio equity funds. Furthermore, they pointed out a positive and statistically significant relationship between the level of competition and the performance of funds, as well as in the interaction between competition and performance persistence. Consequently, indicating that, funds with greater performance persistence tend to maintain this persistence even in the face of greater industry competition.http://www.redalyc.org/articulo.oa?id=123071410003performancecompetitioninvestment fundsalpha |
| spellingShingle | Sabrina Espinele da Silva Leticia Fernandes Pereira Simone Evangelista Fonseca Robert Iquiapaza Industry Competition and Performance Persistence in Brazilian Equity Mutual Funds BBR: Brazilian Business Review performance competition investment funds alpha |
| title | Industry Competition and Performance Persistence in Brazilian Equity Mutual Funds |
| title_full | Industry Competition and Performance Persistence in Brazilian Equity Mutual Funds |
| title_fullStr | Industry Competition and Performance Persistence in Brazilian Equity Mutual Funds |
| title_full_unstemmed | Industry Competition and Performance Persistence in Brazilian Equity Mutual Funds |
| title_short | Industry Competition and Performance Persistence in Brazilian Equity Mutual Funds |
| title_sort | industry competition and performance persistence in brazilian equity mutual funds |
| topic | performance competition investment funds alpha |
| url | http://www.redalyc.org/articulo.oa?id=123071410003 |
| work_keys_str_mv | AT sabrinaespineledasilva industrycompetitionandperformancepersistenceinbrazilianequitymutualfunds AT leticiafernandespereira industrycompetitionandperformancepersistenceinbrazilianequitymutualfunds AT simoneevangelistafonseca industrycompetitionandperformancepersistenceinbrazilianequitymutualfunds AT robertiquiapaza industrycompetitionandperformancepersistenceinbrazilianequitymutualfunds |