City size and fund performance☆

Christoffersen, Susan E. K.; Sarkissian, Sergei

doi:10.1016/j.jfineco.2008.06.001

Cited by 135 publications

(52 citation statements)

References 34 publications

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“…We see that only less experienced managers in financial centers trade significantly more (approximately 11% higher) than their peers in smaller places, yet they do not achieve any gains from this extra trading, irrespective of whether abnormal, four-factor, or conditional risk-adjusted returns are used. In comparison, there is only marginal difference in turnover for more experienced managers between the two locations, and all the outperformance of funds in financial centers is concentrated among more experienced managers as shown in Christoffersen and Sarkissian (2009). This finding is consistent with Gervais and Odean (2001) and Daniel, Hirshleifer, and Subrahmanyam (1998) since the signs of overconfident trading are present only among inexperienced investors, and as managers learn their true ability the turnover differential disappears.…”

Section: Turnover and Performance Across Fund And Manager Characterissupporting

confidence: 75%

“…This paper provides a unique look at determinants of mutual fund turnover by focusing on demographic differences across managers, such as managerial experience, location, education, and gender. Christoffersen and Sarkissian (2009) report that turnover of funds in financial centers is higher than in smaller cities. This extra trading activity may be due to better access to information in large cities.…”

Section: Motivationmentioning

confidence: 99%

“…This study is most closely related to Christoffersen and Sarkissian (2009), but discusses different economic questions. Christoffersen and Sarkissian (2009) focus on fund returns and find that mutual funds located in financial centers tend to outperform funds located in other places over time.…”

Section: Introductionmentioning

confidence: 99%

“…Christoffersen and Sarkissian (2009) focus on fund returns and find that mutual funds located in financial centers tend to outperform funds located in other places over time. The main explanation behind their results is better learning opportunities in large cities.…”

Section: Introductionmentioning

confidence: 99%

“…Consistent with theoretical models, we observe that detrimental overconfident trading disappears with experience. While performance gains among fund managers in financial centers relates to improved investing skills over time, as shown in Christoffersen and Sarkissian (2009), some early improvements may also come from learning to be less overconfident. To make our findings compatible with those in Christoffersen and Sarkissian (2009), we use the same data set.…”

Section: Introductionmentioning

confidence: 99%

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The demographics of fund turnover

Christoffersen

Sarkissian

2011

Journal of Financial Intermediation

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This article documents various demographic factors which influence mutual fund turnover including managerial experience, location, education, and gender. On average, funds in financial centers trade more but this excess turnover declines with experience. While most extra trading is concentrated among less experienced managers in financial centers, they do not outperform inexperienced managers located in smaller towns. Furthermore, managers in financial centers increase trading after good performance. This result is particularly strong for inexperienced, more educated male fund managers investing in growth stocks and located in New York. Our results provide strong evidence that demographic factors influence fund manager trading behavior.JEL Classification: G2; J1; J24

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Section: Turnover and Performance Across Fund And Manager Characterissupporting

confidence: 75%

Section: Motivationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

The demographics of fund turnover

Christoffersen

Sarkissian

2011

Journal of Financial Intermediation

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Beyond clusters: How regional geographic signature affects firm value and risk

Bell

Deng²

2013

Can J Adm Sci

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Existing studies examining how geography affects firm outcomes primarily consider how clusters affect performance. We examine how regional geographic signature-industry clusters, regional economic diversity, region size, and regional innovativeness-affects firm value and systematic and unsystematic risk using a sample of publicly traded American bank holding companies. After controlling for endogeneity of clusters, we find that locating in large and innovative regions enhances firm value, while locating in clusters and diversifying into many regions reduces value. Clusters reduce systematic risk and increase unsystematic risk, while economic diversity and innovativeness increase systematic risk. Thus, geographic locales exert multifaceted influences on value and risk, and we need to consider more than industry clusters and geographic diversification when considering geographic influence. Copyright © 2013 ASAC. Published by John Wiley & Sons, Ltd. JEL Classifications: M10, R12Keywords: geographic signature, cluster, performance, risk, banking Résumé Les travaux courants sur l'influence que la géographie a sur la performance de l'entreprise examinent surtout l'impact des concentrations sur la performance. Cette étude s'appuie sur un échantillon de sociétés de portefeuille bancaire américaines cotées en bourse pour se pencher sur la manière dont la signature géographique régionale-concentrations de l'industrie, diversité de l'économie régionale, taille de la région et capacité de la région à innover-influe sur la valeur de la firme et sur le risque systématique et non systématique. Après avoir neutralisé le caractère endogène des concentrations, l'étude révèle que les firmes installées dans de grandes régions innovantes gagnent en valeur tandis que les firmes installées dans les concentrations et diversifiées par régions en perdent. Les concentrations réduisent le risque systématique et augmentent le risque systématique, tandis que la diversité de l'économie et l'innovativité augmente le risque non systématique. Il s'ensuit que les milieux géographiques exercent des influences multiples sur la valeur et le risque. Par conséquent, dans l'étude de l'influence géographique, il faut aller au-delà des concentrations de l'industrie et de la diversification géographique.

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How do the size and independence of the board of trustees affect the financial and sustainable performance of socially responsible mutual funds?

Muñoz

2020

Corp Soc Responsibility Env

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In this article, I study for first time how the board of trustees’ size and independence influence the financial performance and sustainability scores of socially responsible (SR) mutual funds. The sample analyzed consists of 99 SR US domestic equity mutual funds existing in the period 2012–2018. The results obtained indicate that funds monitored by boards with a lower number of trustees and an independent chair show lower net expense ratios and better sustainability scores. In addition, smaller boards and a greater percentage of independent trustees are positively associated with the achievement of a better risk‐adjusted financial performance. Regarding SR strategies, negative screens are more likely among funds with larger and less independent boards whereas positive screens are more frequent when boards show the opposite characteristics. Another finding indicates that SR funds that implement positive screens present more industry concentrated portfolios that lead to the achievement of a more sustainable performance.

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City size and fund performance☆

Cited by 135 publications

References 34 publications

The demographics of fund turnover

The demographics of fund turnover

Beyond clusters: How regional geographic signature affects firm value and risk

How do the size and independence of the board of trustees affect the financial and sustainable performance of socially responsible mutual funds?

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