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A Tangled Tale of Training and Talent: PhDs in Institutional Asset Management

Author

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  • Ranadeb Chaudhuri

    (Accounting and Finance Department, School of Business Administration, Oakland University, Rochester, Michigan 48309)

  • Zoran Ivković

    (Department of Finance, Broad College of Business, Michigan State University, East Lansing, Michigan 48824)

  • Joshua Pollet

    (Department of Finance, Gies College of Business, University of Illinois, Champaign, Illinois 61820)

  • Charles Trzcinka

    (Department of Finance, Kelly School of Business, Indiana University, Bloomington, Indiana 47405)

Abstract

Performance of investment products managed by firms in which PhDs play a key role is superior to the performance of products managed by otherwise similar firms. This relation is not a result of endogenous matching between firms and PhDs. Performance is related to training (the field of study) because economics or finance PhDs outperform other PhDs. Performance is also related to talent because PhDs who published in top outlets outperform other PhDs. Field-specific training is not relevant among the most talented PhDs because the performance gap between economics or finance PhDs and other PhDs disappears among published PhDs.

Suggested Citation

  • Ranadeb Chaudhuri & Zoran Ivković & Joshua Pollet & Charles Trzcinka, 2020. "A Tangled Tale of Training and Talent: PhDs in Institutional Asset Management," Management Science, INFORMS, vol. 66(12), pages 5623-5647, December.
    • Handle: RePEc:inm:ormnsc:v:66:y:12:i:2020:p:5623-5647
    DOI: 10.1287/mnsc.2019.3431
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