There's historically zero evidence this is ever a proper correlation.
I think Rockstar is literally the only dev company that applies too. Call of Duty has something like 3,000+ people working on it and its still a buggy mess. Same with pretty much any modern western AAA game. Meanwhile, smaller studios like Insomniac, i.d., and Valve (when they feel like it) make consistently great games.
Size has zero correlation with quality, just look at EA or Ubisoft. Ubisoft hasn't released a single interesting game since Rayman Legends (which was also made with a small studio, mind you) and they are huge.