Abstract

Discussion about the effect of constraints in portfolio selection is a popular topic in finance. In this paper, we test the portfolio performance under the existence of regulatory constraints. This paper tries to provide evidence of whether the existence of regulatory constraints translates into a better long-term performance of investment funds, one of the most important investment vehicles for citizens. We show the returns and their relationship with the portfolio’s risk, compared to the same set without the usage of these constraints. The results state that, when using regulation as the constraining factor, we obtain more efficient portfolios.

Details

Title
The impact of regulation-based constraints on portfolio selection: The Spanish case
Author
Grizickas Sapkute, E. 1 ; Sánchez-Granero, M. A. 2   VIAFID ORCID Logo  ; López García, M. N. 1 ; Trinidad Segovia, J. E. 1   VIAFID ORCID Logo 

1  University of Almería, Department of Economics and Business, Almería, Spain (GRID:grid.28020.38) (ISNI:0000000101969356) 
2  University of Almería, Department of Mathematics, Almería, Spain (GRID:grid.28020.38) (ISNI:0000000101969356) 
Publication year
2022
Publication date
Dec 2022
Publisher
Springer Nature B.V.
e-ISSN
2662-9992
Source type
Scholarly Journal
Language of publication
English
DOI
https://doi.org/10.1057/s41599-022-01327-w
ProQuest document ID
2714223897
Copyright
© The Author(s) 2022. corrected publication 2022. This work is published under http://creativecommons.org/licenses/by/4.0/ (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.