Abstract

http://ssrn.com/abstract=1951524
 
 

References (46)



 
 

Citations (5)



 


 



What is in a Name? Mutual Fund Flows When Managers Have Foreign-Sounding Names


Alok Kumar


University of Miami - School of Business Administration

Alexandra Niessen-Ruenzi


University of Mannheim - Department of Finance

Oliver G. Spalt


Tilburg University - Department of Finance

January 4, 2015

Review of Financial Studies, Forthcoming

Abstract:     
We show that name-induced stereotypes affect the investment choices of U.S. mutual fund investors. Managers with foreign-sounding names have about 10% lower annual fund flows and this effect is stronger among funds with investor clienteles more likely to be suspicious of foreigners. Foreign-name managers experience lower appreciation (greater decline) in flows following good (bad) performance. Following 9/11, flows to funds with managers with Middle-Eastern sounding names decline abnormally. In an experimental setting where skill differences are absent, individuals allocate 11% less money to an index fund managed by a foreign-name manager. This gap widens following the Boston marathon bombings.

Number of Pages in PDF File: 56

Accepted Paper Series





Download This Paper

Date posted: November 2, 2011 ; Last revised: January 10, 2015

Suggested Citation

Kumar, Alok and Niessen-Ruenzi, Alexandra and Spalt, Oliver G., What is in a Name? Mutual Fund Flows When Managers Have Foreign-Sounding Names (January 4, 2015). Review of Financial Studies, Forthcoming. Available at SSRN: http://ssrn.com/abstract=1951524 or http://dx.doi.org/10.2139/ssrn.1951524

Contact Information

Alok Kumar (Contact Author)
University of Miami - School of Business Administration ( email )
514 Jenkins Building
Department of Finance
Coral Gables, FL 33124-6552
United States
305-284-1882 (Phone)
HOME PAGE: http://moya.bus.miami.edu/~akumar
Alexandra Niessen-Ruenzi
University of Mannheim - Department of Finance ( email )
Mannheim, 68131
Germany
Oliver G. Spalt
Tilburg University - Department of Finance ( email )
Department of Finance
Tilburg University
Tilburg, 5000 LE
Netherlands
+31 13 466 3545 (Phone)
HOME PAGE: http://www.oliverspalt.com
Feedback to SSRN


Paper statistics
Abstract Views: 2,800
Downloads: 568
Download Rank: 27,355
References:  46
Citations:  5

© 2015 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.328 seconds