Do Investors Pay Less Attention to Women (Fund Managers)?

71 Pages Posted: 21 Sep 2021 Last revised: 18 Nov 2021

See all articles by P. Raghavendra Rau

P. Raghavendra Rau

University of Cambridge

Jinhua Wang

University of Cambridge

Date Written: November 18, 2021

Abstract

We document a gender-based attention effect in the sensitivity of mutual fund flows to fund performance using individual-level fund data from a fintech platform in China. Investors increase (decrease) flows to funds following positive and strong (negative and weak) prior- month performance. However, although there is no significant difference in the performance of male and female managers, the sensitivity effect significantly weakens if the fund manager is female. The effect persists after controlling for managerial characteristics and fund objectives, as well as individual investor fixed effects. Simply put, investors react less to the performance of female fund managers.

Keywords: Mutual funds, flow-performance relationship, attention bias, gender bias, fintech, inclusive finance, behavioral finance, psychology, Natural Language Processing

Suggested Citation

Rau, P. Raghavendra and Wang, Jinhua, Do Investors Pay Less Attention to Women (Fund Managers)? (November 18, 2021). Available at SSRN: https://ssrn.com/abstract=3926970 or http://dx.doi.org/10.2139/ssrn.3926970

P. Raghavendra Rau

University of Cambridge ( email )

Cambridge Judge Business School
Trumpington Street
Cambridge, Cambridgeshire CB21AG
United Kingdom
3103626793 (Phone)

HOME PAGE: http://www.raghurau.com/

Jinhua Wang (Contact Author)

University of Cambridge ( email )

Cambridge Judge Business School
Trumpington Street
Cambridge
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
134
Abstract Views
782
rank
271,404
PlumX Metrics