By a News Reporter-Staff News Editor at Investment Weekly News -- Investigators publish new report on Economics and Finance. According to news reporting originating in Selangor, Malaysia, by VerticalNews journalists, research stated, "In this paper assess the relative performance of US mutual funds using a non-parametric method such as data envelopment analysis (DEA). In particular, we assess the changes of mutual funds' total productivity using the DEA-based Tornqvist productivity Index."
The news reporters obtained a quote from the research from National University, "The findings show significant losses in mutual funds' productivity over the period 2000-2012, which has attracted the attention of US market regulators and policymakers. This paper presents some significant and important implications because we introduce the potential sources of operational inefficiency and unproductiveness. Using a panel logit model, it is revealed that a significant negative relationship exists between the efficiency and productivity and the size and management fee of mutual funds, a result that may be associated with the microstructure of the US stock market. Moreover, it is found that there is a significant positive relationship between the efficiency and productivity and the age and incentive fee of mutual funds. Average productivity growth in the US mutual fund industry is equal to 0.98, which hints at its unsatisfactory performance over the studied period."
According to the news reporters, the research concluded: "Finally, we present the findings versus the notion of the mean-variance (MV) efficiency of mutual funds."
For more information on this research see: Productivity and Efficiency Evaluation of US Mutual Funds. Finance A Uver-Czech Journal of Economics and Finance, 2014;64(2):120-143. Finance A Uver-Czech Journal of Economics and Finance can be contacted at: Charles Univ-Prague, C, O Datakonekt S R O, Vinohradska 49, PO Box 6, Prague 2 120 00, Czech Republic.
Our news correspondents report that additional information may be obtained by contacting M.R. Tavakoli Baghdadabad, Natl Univ Malaysia, Selangor, Malaysia.
Keywords for this news article include: Asia, Selangor, Malaysia, Economics and Finance, Investment and Finance
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