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Gender and mutual fund liquidity

Gender and mutual fund liquidity
Gender and mutual fund liquidity

We examine whether US mutual funds managed by females have a higher portfolio liquidity than those of their male counterparts. Single female managers’ holdings are 8–25% more liquid than those of single-male-managed funds. When there is a transition from a male to a female manager, fund holdings liquidity increases compared with a male to male transition. The findings are consistent with the risk-averse and conservative decision-making behaviour of female managers. We do not find evidence to support the excessive trading hypothesis that predicts a higher portfolio liquidity for overconfident male fund managers. Our findings add to growing evidence that gender affects professionals’ investment choices.

gender, mutual fund liquidity, mutual funds
1045-3172
Sehrish, Saba
7e489795-950d-462a-9e0c-4c35c75ad171
Naeem, Muhammad Abubakr
959d6cc4-53d1-47dc-8c3c-0354a08633d7
Karim, Sitara
1f712808-acf8-4b84-b157-0464f326704c
Yarovaya, Larisa
2bd189e8-3bad-48b0-9d09-5d96a4132889
Sehrish, Saba
7e489795-950d-462a-9e0c-4c35c75ad171
Naeem, Muhammad Abubakr
959d6cc4-53d1-47dc-8c3c-0354a08633d7
Karim, Sitara
1f712808-acf8-4b84-b157-0464f326704c
Yarovaya, Larisa
2bd189e8-3bad-48b0-9d09-5d96a4132889

Sehrish, Saba, Naeem, Muhammad Abubakr, Karim, Sitara and Yarovaya, Larisa (2023) Gender and mutual fund liquidity. British Journal of Management. (doi:10.1111/1467-8551.12727).

Record type: Article

Abstract

We examine whether US mutual funds managed by females have a higher portfolio liquidity than those of their male counterparts. Single female managers’ holdings are 8–25% more liquid than those of single-male-managed funds. When there is a transition from a male to a female manager, fund holdings liquidity increases compared with a male to male transition. The findings are consistent with the risk-averse and conservative decision-making behaviour of female managers. We do not find evidence to support the excessive trading hypothesis that predicts a higher portfolio liquidity for overconfident male fund managers. Our findings add to growing evidence that gender affects professionals’ investment choices.

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More information

Accepted/In Press date: 4 April 2023
e-pub ahead of print date: 1 May 2023
Published date: 1 May 2023
Additional Information: Publisher Copyright: © 2023 The Author. British Journal of Management published by John Wiley & Sons Ltd on behalf of British Academy of Management.
Keywords: gender, mutual fund liquidity, mutual funds

Identifiers

Local EPrints ID: 476911
URI: http://eprints.soton.ac.uk/id/eprint/476911
ISSN: 1045-3172
PURE UUID: b8736fc9-238a-416e-8494-698f4588172e
ORCID for Larisa Yarovaya: ORCID iD orcid.org/0000-0002-9638-2917

Catalogue record

Date deposited: 19 May 2023 16:33
Last modified: 06 Jun 2024 02:05

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Contributors

Author: Saba Sehrish
Author: Muhammad Abubakr Naeem
Author: Sitara Karim
Author: Larisa Yarovaya ORCID iD

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