Review of Financial Studies Vol. 31 No. 10 2018
Family Descent as a Signal of Managerial Quality: Evidence from Mutual Funds
Abstract
Using data from individual Census records on the wealth of managers’ parents, we find that mutual fund managers from poor families outperform managers from rich families. We argue that managers born poor face higher entry barriers into asset management. Consistent with this view, managers born poor are promoted only if they outperform, while those born rich are more likely to be promoted for reasons unrelated to performance. Overall, we establish a first link between fund managers’ family descent and their ability to create value. Received December 8, 2016; editorial decision November 20, 2017 by Editor Andrew Karolyi.
- DOI
- 10.1093/rfs/hhy010
- Volume
- 31
- Issue
- 10
- Pages
- 3756-3820
- Language
- en
- Sources
- openalex bibtex:phds-export.bib crossref