What's in a Name? Mutual Fund Flows When Managers Have Foreign-Sounding Names

• 成果类型: Article
• 署名作者: Kumar, Alok; Niessen-Ruenzi, Alexandra; Spalt, Oliver G.
• 署名单位: University of Miami; University of Mannheim; Tilburg University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhv017
• 发表日期: 2015
• 页码: 2281
• 关键词: COMMON-STOCK INVESTMENT; racial-discrimination; individual investors; MARKET; RISK; INFORMATION; incentives; geography; returns; GENDER

摘要

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.