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The Value of Social Networks in Financial Markets

  • Michela Rancan

Social contacts influence decisions and economic outputs in a variety of contexts. Does social network matter also in financial markets? In this paper I investigate the effect of social networks on mutual funds performance by exploiting data on the education of U.S. fund managers. The results show that performance is better for fund managers with many social connections. Furthermore, positional advantages in the social network generate superior performance. This evidence suggests that social interaction and information spillovers have a positive and meaningful value for mutual funds.

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File URL: http://cadmus.eui.eu/bitstream/handle/1814/26337/RSCAS_2013_21.pdf?sequence=1
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File URL: http://hdl.handle.net/1814/26337
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Paper provided by European University Institute in its series RSCAS Working Papers with number 2013/21.

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Date of creation: Mar 2013
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Handle: RePEc:rsc:rsceui:2013/21
Contact details of provider: Postal: Convento, Via delle Fontanelle, 19, 50014 San Domenico di Fiesole (FI) Italy
Web page: http://www.eui.eu/RSCAS/

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