Tighter clearences do reduce noise and aid hight speed running at the expense of low rev power.
Logic goes like this,
At low revs not enough time to properly fill the cylinders at the lower gas velocities and add to that losses from the fresh charge wafting out the exhaust valve do to longer and larger amount of over lap.
Also reduce the clearence between the valves & the piston.
The opposite applies to sloppier settings used fro high speed running