The demographics of fund turnover

Christoffersen, Susan E. K. and Sarkissian, Sergei (2010): The demographics of fund turnover.

Abstract

This article documents various demographic factors which influence mutual fund turnover including managerial experience, location, education, and gender. On average, funds in financial centers trade more but this excess turnover declines with experience. While most extra trading is concentrated among less experienced managers in financial centers, they do not outperform inexperienced managers located in smaller towns. Furthermore, managers in financial centers increase trading after good performance. This result is particularly strong for inexperienced, more educated male fund managers investing in growth stocks and located in New York. Our results provide strong evidence that demographic factors influence fund manager trading behavior.

• Item Type: MPRA Paper
• Language: English
• Keywords: Labor market; Mutual funds; Overconfident trading; Performance evaluation
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services; J - Labor and Demographic Economics > J1 - Demographic Economics; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity

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