Naked Aggression: Personality and portfolio manager performance

Vulkan, Nir and Noe, Thomas (2015) Naked Aggression: Personality and portfolio manager performance. Said Business School Working Paper 2015-1.

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Abstract

Why do portfolio managers actively manage their stock portfolios? The finance literature suggests the importance of financial incentives, effort, information and career concerns. We suggest that personality can also be a factor. We perform an experiment with industry experts. The experiment documents that, in a group decision setting, subjects with high aggression, measured by a standard psychology test, were much more likely to deviate from market tracking. In an individual decision setting, these same subject’s behavior was not significantly affected by aggressiveness. This result suggests that, in group settings, personality, rather than cognitive biases, might be the most important source of behavioral deviations from the rational choice paradigm.

Item Type: Oxford Saïd Research Paper
Keywords: finance
Subject(s): Finance
Centre: Faculty of Finance
Date Deposited: 20 Mar 2015 10:48
Last Modified: 23 Oct 2015 14:08
Funders: not applicable
URI: http://eureka.sbs.ox.ac.uk/id/eprint/5262

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