A Tangled Tale of Training and Talent: PhDs in Institutional Asset Management

52 Pages Posted: 25 Oct 2013 Last revised: 23 May 2017

Ranadeb Chaudhuri

Oakland University

Zoran Ivkovich

Michigan State University, Department of Finance

Joshua Matthew Pollet

University of Illinois at Urbana-Champaign - Department of Finance

Charles Trzcinka

Indiana University - Kelley School of Business - Department of Finance

Date Written: March 16, 2017

Abstract

Performance of investment products managed by firms in which PhDs play a key role is superior to the performance of products managed by otherwise similar firms. This relation is not a result of endogenous matching between firms and PhDs. Performance is related to training (the field of study) because economics or finance PhDs outperform other PhDs. Performance is also related to talent because PhDs who published in top outlets outperform other PhDs. Field-specific training does not matter among the most talented PhDs because the performance gap between economics or finance PhDs and other PhDs completely disappears among published PhDs.

Keywords: Ph.D., institutional money management, publications

JEL Classification: G23, G14, J41

Suggested Citation

Chaudhuri, Ranadeb and Ivkovich, Zoran and Pollet, Joshua Matthew and Trzcinka, Charles, A Tangled Tale of Training and Talent: PhDs in Institutional Asset Management (March 16, 2017). Available at SSRN: https://ssrn.com/abstract=2344938 or http://dx.doi.org/10.2139/ssrn.2344938

Ranadeb Chaudhuri (Contact Author)

Oakland University ( email )

320 Eliott Hall
Rochester, MI 48309
United States

Zoran Ivkovich

Michigan State University, Department of Finance ( email )

315 Eppley Center
East Lansing, MI 48824-1122
United States

Joshua Matthew Pollet

University of Illinois at Urbana-Champaign - Department of Finance ( email )

1206 South Sixth Street
Champaign, IL 61820
United States
(217) 344-4311 (Phone)

Charles Trzcinka

Indiana University - Kelley School of Business - Department of Finance ( email )

Kelley School of Business
1309 E. 10th St.
Bloomington, IN 47405
United States
812-855-9908 (Phone)
812-855-5875 (Fax)

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