What a difference a (birth) month makes: The relative age effect and fund manager performance
| Autor: | Kevin Mullally, John Bai, Linlin Ma, David H. Solomon |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
040101 forestry
Economics and Econometrics 050208 finance Window dressing business.industry Strategy and Management 05 social sciences Birth Month 04 agricultural and veterinary sciences School entry Relative age effect Investment management Accounting 0502 economics and business 0401 agriculture forestry and fisheries Demographic economics business Psychology health care economics and organizations Finance Mutual fund Stock (geology) |
| Zdroj: | Journal of Financial Economics. 132:200-221 |
| ISSN: | 0304-405X |
| DOI: | 10.1016/j.jfineco.2018.10.003 |
| Popis: | Many US states have a single cutoff date for school entry, meaning that some children are older than others when they begin kindergarten. We show that this variation in birth months is associated with differences in adult labor market outcomes in the mutual fund industry. Relatively older managers (i.e., those born just after the cutoff) make better stock selections, and their funds outperform their younger peers’ funds by 0.48% per annum. This difference is linked to increased confidence. Survey respondents judge relatively older managers as appearing more confident in photographs, and these managers display more confident behavior: making larger bets, window dressing their holdings less, and securing more fund flows conditional on performance. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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