Lee, Jung Hoon; Patel, Saurin; Venkatesan, Shyam - 2022
We investigate the effects of contractual arrangements on the portfolio risk choice of outsourced mutual funds …. Outsourced funds display two times more strategic risk-shifting than in-house managed funds. After instrumenting for a fund …'s outsourcing status, we further establish a causal relationship between outsourcing and strategic risk-shifting. Our evidence shows …