Friends in Need are Friends Indeed: An Analysis of Social Ties between Financial Analysts and Mutual Fund Managers

2016 ◽  
Author(s):  
Zhaoyang Gu ◽  
Guangqing Li ◽  
Zengquan Li ◽  
Yong George Yang
Keyword(s):  
Mutual Fund ◽  
Social Ties ◽  
Financial Analysts ◽  
Mutual Fund Managers ◽  
Fund Managers

Friends in Need Are Friends Indeed: An Analysis of Social Ties between Financial Analysts and Mutual Fund Managers

2018 ◽  
Vol 94 (1) ◽  
pp. 153-181 ◽  
Author(s):  
Zhaoyang Gu ◽  
Zengquan Li ◽  
Yong George Yang ◽  
Guangqing Li
Keyword(s):  
Mutual Fund ◽  
Social Ties ◽  
Financial Analysts ◽  
Data Availability ◽  
Fund Manager ◽  
Mutual Fund Managers ◽  
Business Decisions ◽  
The Public ◽  
Fund Managers ◽  
Jel Classifications

ABSTRACT We examine how hometown, school, and workplace ties between financial analysts and mutual fund managers affect their business decisions. We show that a fund manager is more likely to hold stocks covered by analysts with whom she is socially connected, and that she also makes higher profits from these holdings. Such social tie-related holding returns are higher among more opaque firms. In return, a fund manager tends to cast her star analyst votes in favor of her connected analysts, and her fund company is more likely to allocate trading commissions to her connected analysts' brokerages. Additional tests indicate that analysts more actively acquire information (through conducting corporate site visits) and issue more optimistically biased recommendations for stocks held by fund managers with whom they are connected. Overall, our results illustrate the pronounced influence of social networks on the behaviors of analysts and fund managers. JEL Classifications: G10; G23; M40. Data Availability: Data are available from the public sources cited in the text.

Peer versus Pure Benchmarks in the Compensation of Mutual Fund Managers

2019 ◽  
Author(s):  
Richard B. Evans ◽  
Juan-Pedro Gomez ◽  
Linlin Ma ◽  
Yuehua Tang
Keyword(s):  
Mutual Fund ◽  
Mutual Fund Managers ◽  
Fund Managers

When Mutual Fund Managers Write Confidently

2019 ◽  
Author(s):  
Qianzhou Du ◽  
Yawen Jiao ◽  
Pengfei Ye ◽  
Weiguo Fan
Keyword(s):  
Mutual Fund ◽  
Mutual Fund Managers ◽  
Fund Managers
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