Sex Matters: Gender Bias in the Mutual Fund Industry
50 Pages Posted: 9 Nov 2011 Last revised: 31 Aug 2017
Date Written: August 30, 2017
We document significantly lower inflows in female-managed funds than in male-managed funds. This result is obtained with field data and with data from a laboratory experiment. We find no gender differences in performance. Thus, rational statistical discrimination is unlikely to explain the fund flow effect. We conduct an implicit association test and find that subjects with stronger gender bias according to this test invest significantly less in female-managed funds. Our results suggest that gender bias affects investment decisions and thus offer a new potential explanation for the low fraction of women in the mutual fund industry.
Keywords: Mutual Funds; Investor Behavior; Gender Bias; Implicit Association Test
JEL Classification: G23, J71
Suggested Citation: Suggested Citation