EconPapers    
Economics at your fingertips  
 

Tax‐Efficient Asset Management: Evidence from Equity Mutual Funds

Clemens Sialm () and Hanjiang Zhang

Journal of Finance, 2020, vol. 75, issue 2, 735-777

Abstract: We investigate the relation between tax burdens and mutual fund performance from both a theoretical and an empirical perspective. The theoretical model introduces heterogeneous tax clienteles in an environment with decreasing returns to scale and shows that the equilibrium performance of mutual funds depends on the size of the tax clienteles. Our empirical results show that the performance of U.S. equity mutual funds is related to their tax burdens. We find that tax‐efficient funds exhibit not only superior after‐tax performance, but also superior before‐tax performance due to lower trading costs, favorable style exposures, and better selectivity.

Date: 2020
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/jofi.12843

Related works:
Working Paper: Tax-Efficient Asset Management: Evidence from Equity Mutual Funds (2015) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jfinan:v:75:y:2020:i:2:p:735-777

Ordering information: This journal article can be ordered from
http://www.afajof.org/membership/join.asp

Access Statistics for this article

More articles in Journal of Finance from American Finance Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2020-09-08
Handle: RePEc:bla:jfinan:v:75:y:2020:i:2:p:735-777