Information Barriers in Global Markets: Evidence from International Subcontracting Relationships
研究基金家族如何通过外包信息劣势基金来提升业绩，利用结构模型估算出每月4-14个基点的外包收益，并以此作为衡量全球金融市场分割程度的新指标。
We study the link between information barriers in global markets and the organizational form of asset management. Fund families outsource funds in which they are at an informational disadvantage to generate performance. Using a structural model of self-selection, we endogenize the outsourcing decision and estimate positive gains from outsourcing of 4–14 basis points per month, thereby reconciling underperformance of outsourced funds with performance maximization by fund families. The gains from outsourcing provide a novel proxy for the information barriers that segment global financial markets: The more segmented the underlying markets where the funds invest, the larger the gains from outsourcing.