When school ties meet geography: Education-province bias in mutual fund portfolios

Liang, Q; Jin, Q; Lu, M; Shan, Y

When school ties meet geography: Education-province bias in mutual fund portfolios

Liang, Q Jin, Q Lu, M Shan, Y

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Publisher:: ELSEVIER
Publication Type:: Journal Article
Citation:: Journal of Banking and Finance, 2023, 157
Issue Date:: 2023-12-01

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Field	Value	Language
dc.contributor.author	Liang, Q
dc.contributor.author	Jin, Q
dc.contributor.author	Lu, M
dc.contributor.author	Shan, Y https://orcid.org/0000-0003-2156-8722
dc.date.accessioned	2024-03-14T19:58:45Z
dc.date.available	2024-03-14T19:58:45Z
dc.date.issued	2023-12-01
dc.identifier.citation	Journal of Banking and Finance, 2023, 157
dc.identifier.issn	0378-4266
dc.identifier.issn	1872-6372
dc.identifier.uri	http://hdl.handle.net/10453/176717
dc.description.abstract	Fund managers tilt towards stocks from the location of their tertiary education (education province). We find that, compared with their peers, fund managers overweight stocks headquartered in their education provinces. This overweighting differs from other biases, such as local bias, hometown bias, and educational ties, and is detrimental to fund performance. Funds with more education-province bias have poorer fund performance and higher idiosyncratic risk than those with less bias. Further analysis shows that education-province bias is more evident during poor market times, among underperforming funds, for stocks with less information asymmetry, in economically depressed provinces, and when fund managers are educated at lower-ranked institutes. Overall, our findings suggest that education-province bias is largely attributed to fund managers’ familiarity bias.
dc.language	English
dc.publisher	ELSEVIER
dc.relation	http://purl.org/au-research/grants/arc/DP210101354
dc.relation	http://purl.org/au-research/grants/arc/DP210101004
dc.relation.ispartof	Journal of Banking and Finance
dc.relation.isbasedon	10.1016/j.jbankfin.2023.107021
dc.rights	info:eu-repo/semantics/closedAccess
dc.subject	0102 Applied Mathematics, 1401 Economic Theory, 1502 Banking, Finance and Investment
dc.subject.classification	Finance
dc.subject.classification	3502 Banking, finance and investment
dc.subject.classification	4901 Applied mathematics
dc.title	When school ties meet geography: Education-province bias in mutual fund portfolios
dc.type	Journal Article
utslib.citation.volume	157
utslib.for	0102 Applied Mathematics
utslib.for	1401 Economic Theory
utslib.for	1502 Banking, Finance and Investment
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/Accounting Discipline
utslib.copyright.status	closed_access	*
dc.date.updated	2024-03-14T19:58:42Z
pubs.publication-status	Published
pubs.volume	157

Abstract:

Fund managers tilt towards stocks from the location of their tertiary education (education province). We find that, compared with their peers, fund managers overweight stocks headquartered in their education provinces. This overweighting differs from other biases, such as local bias, hometown bias, and educational ties, and is detrimental to fund performance. Funds with more education-province bias have poorer fund performance and higher idiosyncratic risk than those with less bias. Further analysis shows that education-province bias is more evident during poor market times, among underperforming funds, for stocks with less information asymmetry, in economically depressed provinces, and when fund managers are educated at lower-ranked institutes. Overall, our findings suggest that education-province bias is largely attributed to fund managers’ familiarity bias.

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http://hdl.handle.net/10453/176717