The State of Origin of Australian Equity: Does Active Fund Manager Location Matter?

Fong, K; Gallagher, DR; Lee, AD

The State of Origin of Australian Equity: Does Active Fund Manager Location Matter?

Fong, K Gallagher, DR

Lee, AD

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Publication Type:: Journal Article
Citation:: Australian Journal of Management, 2008, 32 (3), pp. 503 - 523
Issue Date:: 2008-01-01

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Field	Value	Language
dc.contributor.author	Fong, K	en_US
dc.contributor.author	Gallagher, DR https://orcid.org/0000-0003-4544-3916	en_US
dc.contributor.author	Lee, AD https://orcid.org/0000-0001-5984-8688	en_US
dc.date.issued	2008-01-01	en_US
dc.identifier.citation	Australian Journal of Management, 2008, 32 (3), pp. 503 - 523	en_US
dc.identifier.issn	0312-8962	en_US
dc.identifier.uri	http://hdl.handle.net/10453/10027
dc.description.abstract	We examine the relation of active equity fund managers’ location proximity to a stock's headquarter and fund managers’ stock selection skill and investment behaviour using a representative sample of Australian institutional equity funds. Contrary to the findings of much international research, our study reveals evidence which is inconsistent with a location advantage for Melbourne and Sydney active equity funds. Both Melbourne and Sydney fund managers overweight Melbourne stocks, exhibit skill in picking Sydney stocks and avoid poor performing Melbourne and Sydney stocks. In addition, we find no evidence of word-of-mouth trading effects in Melbourne or Sydney funds. Taken together, this suggests information asymmetries arising from location are weak for Melbourne and Sydney funds. © 2008, SAGE Publications. All rights reserved.	en_US
dc.relation.ispartof	Australian Journal of Management	en_US
dc.relation.isbasedon	10.1177/031289620803200307	en_US
dc.title	The State of Origin of Australian Equity: Does Active Fund Manager Location Matter?	en_US
dc.type	Journal Article
utslib.citation.volume	3	en_US
utslib.citation.volume	32	en_US
utslib.for	1502 Banking, Finance and Investment	en_US
utslib.for	15 Commerce, Management, Tourism and Services	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Finance Discipline
pubs.organisational-group	/University of Technology Sydney/Strength - QFRC - Quantitative Finance Research Centre
utslib.copyright.status	open_access
pubs.issue	3	en_US
pubs.publication-status	Published	en_US
pubs.volume	32	en_US

Abstract:

We examine the relation of active equity fund managers’ location proximity to a stock's headquarter and fund managers’ stock selection skill and investment behaviour using a representative sample of Australian institutional equity funds. Contrary to the findings of much international research, our study reveals evidence which is inconsistent with a location advantage for Melbourne and Sydney active equity funds. Both Melbourne and Sydney fund managers overweight Melbourne stocks, exhibit skill in picking Sydney stocks and avoid poor performing Melbourne and Sydney stocks. In addition, we find no evidence of word-of-mouth trading effects in Melbourne or Sydney funds. Taken together, this suggests information asymmetries arising from location are weak for Melbourne and Sydney funds. © 2008, SAGE Publications. All rights reserved.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/10027