City size and fund performance

• 成果类型: Article
• 署名作者: Christoffersen, Susan E. K.; Sarkissian, Sergei
• 署名单位: McGill University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2008.06.001
• 发表日期: 2009
• 页码: 252-275
• 关键词: Information spillovers; labor market; Mutual funds; Performance evaluation

摘要

The literature predicts that the average skill level and productivity are higher in larger cities. Prior studies use workers' wage or education differentials to indirectly link city size and output. This article relates city size and productivity directly, using performance data of U.S. equity mutual funds. On average, funds in financial centers perform better than other funds in terms of both gross and risk-adjusted returns, but this difference is driven only by more experienced managers. Among funds in financial centers there is strong evidence of a positive relation between performance and manager experience in a given city, especially among New York funds. More importantly, we observe performance improvements of the same manager at the same fund in financial centers but not elsewhere. Our tests provide novel evidence of knowledge spillovers and learning in cities. (C) 2009 Elsevier B.V. All rights reserved.