Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/267740 
Year of Publication: 
2022
Series/Report no.: 
CFR Working Paper No. 22-12
Publisher: 
University of Cologne, Centre for Financial Research (CFR), Cologne
Abstract: 
This paper investigates the role of birth order on managerial behavior using rich data on familial background of US mutual fund managers. We find that managers who are born later in the sibling hierarchy take on more investment risks relative to first-born managers, but perform worse. Motivated by sensation seeking, later-born managers take extreme style bets, hold more lottery stocks, and report more civil and regulatory violations compared to lower-birth-order managers. Taken together, our findings suggest that birth order-induced sensation seeking tendencies originate from sibling rivalry for limited parental resources during childhood, shape trading behavior, and extend beyond portfolio management.
Subjects: 
birth order
mutual fund manager
sensation seeking
sibling rivalry
JEL: 
G11
G23
Document Type: 
Working Paper

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