The Value of Social Networks in Financial Markets

Michela Rancan

No 2013/21, RSCAS Working Papers from European University Institute

Abstract: Social contacts influence decisions and economic outputs in a variety of contexts. Does social network matter also in financial markets? In this paper I investigate the effect of social networks on mutual funds performance by exploiting data on the education of U.S. fund managers. The results show that performance is better for fund managers with many social connections. Furthermore, positional advantages in the social network generate superior performance. This evidence suggests that social interaction and information spillovers have a positive and meaningful value for mutual funds.

Keywords: Social Network; Mutual Fund; Performance (search for similar items in EconPapers)
JEL-codes: G23 L14 (search for similar items in EconPapers)
Date: 2013-03
New Economics Papers: this item is included in nep-cfn, nep-ict, nep-net, nep-soc and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:rsc:rsceui:2013/21

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