prudent man or agency problem on the performance of insurance mutual funds xuanjuan chen tong yao yu may 2004 ________________________ and are from college business administration university rhode island is eller public arizona abstract this study analyzes equity managed by companies their subsidiaries we document that underperform non more than one percent in average annual return explore two possible explanations prudence concern risk taking lack incentive to pursue superior there no evidence hold less risky portfolios instead they have lower adjusted returns fund flows sensitive when perform poorly results indicate problems rather main cause underperformance moreover likely suffer such as those using parents brand names set up directly managing assets
