Vidal-Garcia, JavierVidal, MartaBoubaker, SabriHassan, Majdi2025-09-242025-09-242018Vidal-García, J., Vidal, M., Boubaker, S. et al. The efficiency of mutual funds. Ann Oper Res 267, 555–584 (2018). https://doi.org/10.1007/s10479-017-2429-z0254-533010.1007/s10479-017-2429-zhttps://hdl.handle.net/20.500.14352/124277This paper analyzes the short-term market efficiency of the mutual fund industry around the world. Using a unique database of worldwide domestic equity funds, it employs a parametric (regression model) and non-parametric (data envelopment analysis (DEA) model) approaches to establish a relation between cost (expense ratio, turnover, loads, and risk) and benefit (return) of mutual funds. The empirical results of the parametric approach show a statistically significant negative relationship between expenses and risk-adjusted performance across countries. When we reexamine this relationship using a non-parametric approach, we show, in contrast to our previous result, a positive relationship between expenses and risk adjusted performance. Thus, using the DEA methodology, we find strong evidence that equity mutual funds around the world are approximately mean–variance efficient.engjournal articlehttps://doi.org/10.1007/s10479-017-2429-zhttps://link.springer.com/article/10.1007/s10479-017-2429-zopen accessG11G12Mutual fundsPortfolio efficiencyData envelopment analysisMultiple criteria decisionAdministración de empresasFinanzas5311 Organización y Dirección de Empresas