Timing and Selectivity of Mutual Fund Managers: An Empirical Test of the Behavioral Decision-Making Theory
Document Type
Article
Publication Date
6-1-2006
Description
Classical decision-making theory suggests that decisions made by an individual or a team of decision makers should lead to the same performance outcome. Conversely, behavioral decision-making theory argues that decisions made by teams result in superior micro or macro forecasts and performance outcomes. Our tests using mutual funds support the classical decision-making theory. The empirical results are time invariant and robust with respect to the selected index or model specification.
Citation Information
Prather, Larry; and Middleton, Karen L.. 2006. Timing and Selectivity of Mutual Fund Managers: An Empirical Test of the Behavioral Decision-Making Theory. Journal of Empirical Finance. Vol.13(3). 249-273. https://doi.org/10.1016/j.jempfin.2005.10.002 ISSN: 0927-5398
