What Beauty Brings? Managers’ Attractiveness and Fund Performance

46 Pages Posted: 11 Jan 2023 Last revised: 25 Oct 2023

See all articles by Chengyu Bai

Chengyu Bai

Shanghai Jiao Tong University (SJTU) - Shanghai Advanced Institute of Finance (SAIF)

Shiwen Tian

Shanghai Jiao Tong University (SJTU) - Shanghai Advanced Institute of Finance (SAIF)

Date Written: October 9, 2023

Abstract

In this paper, we study the relationship between stock fund managers’ facial attractiveness and fund outcomes. Utilizing the state-of-art deep learning technique to quantify facial attractiveness, we find that funds with facial unattractive managers outperform funds with attractive managers by over 2% per annum. We next show that good-looking managers attract significant higher fund flow especially if the funds are available on Fintech platforms where their photos are accessible to investors. Good-looking managers also have greater chance of promotion and tend to move to small firms. The potential explanations for their underperformance include inadequate ability, insufficient effort, overconfidence and inefficient site visits.

Keywords: Mutual fund, Facial attractiveness, Skill, Fund flow, Manager career

JEL Classification: C81, G11, G21, G41, J70

Suggested Citation

Bai, Chengyu and Tian, Shiwen, What Beauty Brings? Managers’ Attractiveness and Fund Performance (October 9, 2023). Available at SSRN: https://ssrn.com/abstract=4322134 or http://dx.doi.org/10.2139/ssrn.4322134

Chengyu Bai

Shanghai Jiao Tong University (SJTU) - Shanghai Advanced Institute of Finance (SAIF) ( email )

Shanghai Jiao Tong University
211 West Huaihai Road
Shanghai, 200030
China

Shiwen Tian (Contact Author)

Shanghai Jiao Tong University (SJTU) - Shanghai Advanced Institute of Finance (SAIF) ( email )

Shanghai Jiao Tong University
211 West Huaihai Road
Shanghai, 200030
China

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