The Demographics of Fund Turnover
48 Pages Posted: 23 Aug 2008 Last revised: 25 Mar 2009
Date Written: January 31, 2009
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 less experienced, 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.
Keywords: Labor market, Mutual funds, Overconfident trading, Performance evaluation
JEL Classification: G23, J24
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