BUSINESS SCHOOL RESEARCH SEMINAR - Do Fund Managers Believe in Luck? Zodiac Effect and Fund Managers' Behaviour and Performance

BUSINESS SCHOOL RESEARCH SEMINAR - Do Fund Managers Believe in Luck? Zodiac Effect and Fund Managers' Behaviour and Performance
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This is a past event

The seminar will be held via MS Teams on March 6th from 3pm - 4:15pm.

Hear from Dr Xiaofei Xing, a Lecturer (Assistant Professor) in Finance at the University of Birmingham.

Author(s): Jie (Michael) Guo, Vinay Utham, George Wang, Xiaofei Xing

Abstract: "We document striking evidence that cultural backgrounds, such as superstitious beliefs, can largely affect fund managers’ behaviour and performance. In the context of China’s trillion-dollar money management industry, we explore the effect of one of the most influential Chinese superstitious beliefs that zodiac years bring bad fortune. We find that fund managers, motivated by superstitious beliefs, tend to mimic the market index, lower their funds’ idiosyncratic risk, and deliver inferior performance to investors in their zodiac years. Interestingly, the zodiac year effects are sensitive to fund risk level. Bond fund managers are more susceptible to the zodiac year effects than hybrid and equity fund managers, which is consistent with the adaptation-level theory in the." psychology literature.

 

 
Speaker
Dr Xiaofei Xing
Hosted by
University of Aberdeen
Contact

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