Fund Manager Narcissism

49 Pages Posted: 28 Mar 2022 Last revised: 3 Aug 2023

See all articles by Dominik Scheld

Dominik Scheld

University of Marburg | Behavioral Finance Research Group

Oscar Anselm Stolper

University of Marburg | Behavioral Finance Research Group

Anna-Lena Bauer

affiliation not provided to SSRN

Date Written: March 4, 2022

Abstract

Analyzing verbatim interviews, we show that mutual fund managers’ level of narcissism is highly relevant for money management. Supporting the notion that narcissists disregard agreements more often than others, we find that narcissistic fund managers are 34% more likely to deviate from the advertised investment style. A security-by-security analysis of the style-inconsistent funds suggests that fund manager narcissism can explain why these funds tend to make more growth and small-cap bets. Moreover, consistent with a myopic focus on rewards, narcissistic fund managers underperform their peers by an average 1% p.a. We discuss the managerial and policy implications of our results.

Keywords: Narcissism, mutual funds, style consistency, personality traits, risk-taking, retail finance

JEL Classification: D91, G11, G41, G51

Suggested Citation

Scheld, Dominik and Stolper, Oscar Anselm and Bauer, Anna-Lena, Fund Manager Narcissism (March 4, 2022). Available at SSRN: https://ssrn.com/abstract=4049786 or http://dx.doi.org/10.2139/ssrn.4049786

Dominik Scheld (Contact Author)

University of Marburg | Behavioral Finance Research Group ( email )

Am Plan 1
Marburg, 35032
Germany

Oscar Anselm Stolper

University of Marburg | Behavioral Finance Research Group ( email )

Am Plan 1
Marburg, 35032
Germany

HOME PAGE: http://https://www.uni-marburg.de/de/fb02/professuren/bwl/behavioralfinance

Anna-Lena Bauer

affiliation not provided to SSRN

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