QUEEN’S BUSINESS SCHOOL FINANCE SEMINAR SERIES

Wednesday 12^th June

1pm

“Signs of trouble? Superstitions and mutual fund manager risk-taking”

Abstract:

Using a unique dataset from China over the period from 2005 to 2020, we explore the influence of superstitions on mutual fund manager risk-taking. We find a significant 6.10% reduction in risk-taking during the years corresponding to the managers’ zodiac signs. These findings emphasize how superstitions can impact the decisions made by professionals. This effect is especially noticeable among newer managers, those with non-financial educational backgrounds, managers with poor management skills, and during times of high market volatility, suggesting that even professional investors are not immune to such biases.

Professor Raghavendra Rau

University of Cambridge

QBS Conference Hub, Wheston Lecture Theatre 0G.028