What'S in a name? Mutual fund flows when managers have foreign-sounding names

• Autores: Alok Kumar, Alexandra Niessen-Ruenzi, Oliver G. Spalt
• Localización: Review of Financial Studies, ISSN-e 1465-7368, Vol. 28, Nº. 8, 2015, págs. 2281-2321
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • We show that name-induced stereotypes affect the investment choices of U.S. mutual fund investors. Managers with foreign-sounding names have about 10% lower annual fund flows, and this effect is stronger among funds with investor clienteles more likely to be suspicious of foreigners. Foreign-named managers experience lower appreciation (greater decline) in flows following good (bad) performance. Following 9/11, flows to funds with managers with Middle-Eastern-sounding names declined abnormally. In an experimental setting in which skill differences are absent, individuals allocate 11% less money to an index fund managed by a foreign-named manager. This gap widens following the Boston marathon bombings