The Impact of Experience on Risk Taking, Overconfidence, and Herding of Fund Managers: Complementary Survey Evidence

Arbeitspapier

Empirical research has shown that inexperienced fund managers yield significantly higher returns than their more experienced colleagues. If the portfolios of inexperienced are not more risky, this result would contradict the hypothesis of market efficiency. Therefore, it is an important question whether inexperienced fund managers tend to taker higher risks. Higher risk taking may be explained by a higher degree of overconfidence, less herding behavior, or a lower degree of risk aversion. Since the results concerning the relationship between experience and risk taking in previous studies are rather contradictory we analyze whether complementary survey evidence can improve our understanding in this field. In line with the results of previous studies, we find that herding is decreasing with experience while the evidence concerning risk taking and overconfidence is mixed. We will argue that this mixed evidence may be likely due to the heterogeneity in the employed definitions of risk taking and overconfidence.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Diskussionsbeitrag ; No. 292

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors ; Information and Market Efficiency; Event Studies; Insider Trading
• Thema: Overconfidence ; Herdenverhalten ; Fondsmanager ; overconfidence ; herding ; funds manager ; Anlageverhalten ; Investmentfonds ; Risikopräferenz ; Informationsverhalten ; Schätzung ; Deutschland ; herding behavior

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Brozynski, Torsten ; Menkhoff, Lukas ; Schmidt, Ulrich
• Ereignis: Veröffentlichung
• (wer): Universität Hannover, Wirtschaftswissenschaftliche Fakultät
• (wo): Hannover
• (wann): 2004

Weitere Informationen

• Handle: http://hdl.handle.net/10419/22404
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ