X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Mutual-fund managers who lack experience or resources tend to be swayed by a home state advantage, according to a new study from Indiana University’s Kelley School of Business.

While it’s common for portfolios to show a preference for nearby companies, it hasn’t been clear whether bias or a greater amount of information drives the predisposition toward investing in familiar companies, such as those headquartered in the manager’s home state. A forthcoming paper in the Review of Financial Studies, “No Place Like Home: Familiarity in Mutual Fund Manager Portfolio Choice,” is the first to document and quantify this bias among professional investors. The study by three Kelley School professors examined 42,109 quarterly fund observations for more than 2,000 funds.  

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

 

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.