The Secret behind Mutual Fund Manager's Portfolio Decisions: The View of Social Network

• Main Authors: Ya-Lung Huang, 黃雅倫
• Other Authors: Chun-Chieh Liao
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/08176815236508894468

碩士 === 中國文化大學 === 國際貿易學系碩士班 === 97 === Mutual fund industry now plays an extremely important role in the economy. We believe the two agents of our social network provide a useful setting because one side likely possesses private information, while the other side has a large incentive to access this private information. In the context of information flow, social networks allow a piece of information to flow, often in predictable paths, along the network. The social networks we examine in the paper are defined over educational institutions, and thus we have to link each member of the social network by these institutions. We hand-collect data for each fund manager and director’s educational institution and academic discipline from the Taiwan Economic Journal (TEJ) from 2005~2007. This paper suggests that social networks are important for information flow between firms and investors. We find that portfolio managers place larger concentrated bets on stocks they are connected to through their education network, and do significantly better on these holdings relative to non-connected holdings, and relative to connected firms they choose not to hold.