Are N + 1 Heads Better Than One? The Case of Mutual Fund Managers
Document Type
Article
Publication Date
12-1-2002
Description
Recent studies find that mutual funds exhibit differential and persistent performance which is frequently attributed to superior managerial decision making. We extend the literature by examining the impact of the fund's management structure on performance outcomes. Specifically, we examine directly whether superior outcomes, in terms of risk-adjusted returns, may be explained by behavioral decision making theory that asserts that teams make better decisions than individuals. Empirical results are consistent with the classical decision making theory and the efficient market hypothesis.
Citation Information
Prather, Larry J.; and Middleton, Karen L.. 2002. Are N + 1 Heads Better Than One? The Case of Mutual Fund Managers. Journal of Economic Behavior and Organization. Vol.47(1). 103-120. https://doi.org/10.1016/S0167-2681(01)00172-X ISSN: 0167-2681