Open AccessThe Strategic Setting Of Real Estate Mutual Fund Expense Ratios
Author(s) -
Kevin C.H. Chiang,
Zhenhua Rui,
Craig H. Wisen,
Xiyu Zhou
Publication year - 2013
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v29i6.8203
Subject(s) - expense ratio , mutual fund , business , closed end fund , real estate , open end fund , fund administration , finance , target date fund , fund of funds , income fund , actuarial science , monetary economics , economics , institutional investor , corporate governance , market liquidity
Real estate mutual fund expense ratios are analyzed using panel data comprising 1,130 observations. The results show that expense ratio is inversely related to share class assets, fund family size, and fund age. Conversely, the expense ratio is positively related to larger funds and fund families with superior performance. This result is interesting because individual fund classes with favorable performance are associated with lower expense ratios. The results are robust to common estimation methodologies.