Network Nexus: Exploring the Impact of Alumni Connections of Managers on Mutual Fund Performance in India

IF 2.5 Q2 ECONOMICS Asia-Pacific Financial Markets Pub Date : 2023-10-29 DOI:10.1007/s10690-023-09435-6
Sudipta Majumdar, Sayantan Kundu, Sankalp Bose, Abhijeet Chandra
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Abstract

The paper investigates the influence of the alumni social network of mutual fund managers on fund performance in India. The alumni networks of 211 managers managing 585 funds are constructed through seven network centrality measures for the period from April 2013 to March 2022. The study finds that fund managers who are more central to the network on average generate higher risk-adjusted excess return performance (alpha) and take a higher level of idiosyncratic risk. Although the centrality position of managers does not influence them in selecting small-capitalisation, value, and high market-beta stocks, more central fund managers tend to pick momentum stocks. The results affirm that the information advantages in the central position of alumni social networks improve fund performance, influence the managers’ investment style and enable higher risk-taking behaviour. The contribution of the paper is that the findings regarding investment style and fund flows are different than those of developed markets which may be relevant for other emerging markets.

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网络联系:探索经理人的校友关系对印度共同基金业绩的影响
本文研究了印度共同基金经理的校友社会网络对基金业绩的影响。通过七种网络中心度量方法,构建了 2013 年 4 月至 2022 年 3 月期间管理着 585 只基金的 211 位基金经理的校友网络。研究发现,在网络中更具中心地位的基金经理平均产生更高的风险调整后超额收益表现(阿尔法),并承担更高的特异性风险。虽然基金经理的中心地位不会影响他们选择小市值股票、价值型股票和高市值股票,但中心地位较高的基金经理倾向于选择动量型股票。研究结果证实,校友社交网络中心地位的信息优势能提高基金业绩,影响基金经理的投资风格,并促成更高的风险承担行为。本文的贡献在于,关于投资风格和资金流动的研究结果与发达市场不同,这可能与其他新兴市场相关。
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0.00%
发文量
34
期刊介绍: The current remarkable growth in the Asia-Pacific financial markets is certain to continue. These markets are expected to play a further important role in the world capital markets for investment and risk management. In accordance with this development, Asia-Pacific Financial Markets (formerly Financial Engineering and the Japanese Markets), the official journal of the Japanese Association of Financial Econometrics and Engineering (JAFEE), is expected to provide an international forum for researchers and practitioners in academia, industry, and government, who engage in empirical and/or theoretical research into the financial markets. We invite submission of quality papers on all aspects of finance and financial engineering. Here we interpret the term ''financial engineering'' broadly enough to cover such topics as financial time series, portfolio analysis, global asset allocation, trading strategy for investment, optimization methods, macro monetary economic analysis and pricing models for various financial assets including derivatives We stress that purely theoretical papers, as well as empirical studies that use Asia-Pacific market data, are welcome. Officially cited as: Asia-Pac Financ Markets
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