Family descent as a signal of managerial quality: Evidence from mutual funds

Oleg Chuprinin, Denis Sosyura

Research output: Contribution to journalArticlepeer-review

4 Scopus citations

Abstract

Using data from individual Census records on the wealth of managers' parents, we find that mutual fund managers from poor families outperform managers from rich families. We argue that managers born poor face higher entry barriers into asset management. Consistent with this view, managers born poor are promoted only if they outperform, while those born rich are more likely to be promoted for reasons unrelated to performance. Overall, we establish a first link between fund managers' family descent and their ability to create value.

Original languageEnglish (US)
Pages (from-to)3756-3820
Number of pages65
JournalReview of Financial Studies
Volume31
Issue number10
DOIs
StatePublished - Jan 1 2018

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics

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