The Effects Of Personality Traits On Selectivity And Timing Performance Of Mutual Fund Managers

Abstract

The effects of personality traits on selectivity and timing performance of mutual fund managers This study is motivated by the assumption that employees' work performance is affected by their individual characteristics. Thus, the plausible effects of big-five personality traits on the financial performance of equity (A-type)fund managers were investigated The selectivity and market timing performance measures of the funds were taken as proxies for the financial performance of fund managers. They were estimated with Jensen and Treynor and Mazuy indexes and were calculated upon weekly returns of 70 equity funds within a two-year period Lojistic regression analysis revealed that an increase in conscientiousness and openness to experience scores are associated with an increase in the odds of exhibiting successful market timing performance. Neuroticism, on the other hand, is found to be negatively associated with both selectivity and market timing performances. Those findings have practical implications suggesting the utility of personality traits in employee selection processes of equity fund managers.