Efficient Market Managers

Vladimir Atanasov (), Christo Pirinsky and Qinghai Wang ()
Additional contact information
Vladimir Atanasov: Raymond A. Mason School of Business, William & Mary, 101 Ukrop Way, Alan B. Miller Hall, Room 3088, Williamburg, VA 23185, USA
Christo Pirinsky: Department of Finance, University of Central Florida, P.O. Box 161400, Orlando, FL 32816-1400, USA
Qinghai Wang: Department of Finance, University of Central Florida, P.O. Box 161400, Orlando, FL 32816-1400, USA

Quarterly Journal of Finance (QJF), 2021, vol. 11, issue 02, 1-35

Abstract: We examine the effect of the Efficient Market Hypothesis (EMH) on the investment behavior of mutual fund managers. We show that managers who are more likely to be exposed to the ideas of EMH throughout their higher education are more “passive” than their unexposed peers: they are more likely to manage index funds, and when managing active funds, they hold portfolios with larger numbers of stocks and deviate less from their investment benchmarks. Exposed managers, however, take more systematic risks. Although academic exposure to the EMH does not result in better performance, it helps professional investors generate capital inflows.

Keywords: Economic theory; active investing; efficient market hypothesis; mutual funds (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S2010139221500099
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:qjfxxx:v:11:y:2021:i:02:n:s2010139221500099

Ordering information: This journal article can be ordered from

DOI: 10.1142/S2010139221500099

Access Statistics for this article

Quarterly Journal of Finance (QJF) is currently edited by Fernando Zapatero

More articles in Quarterly Journal of Finance (QJF) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().