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Finding your calling: Matching skills with jobs in the mutual fund industry

Author

Listed:
  • Cici, Gjergji
  • Hendriock, Mario
  • Kempf, Alexander

Abstract

To best utilize labor, companies need to match employees' skills with jobs that best fit those skills. Exploiting unique features of the mutual fund industry, we identify instances when this matching happens for fund managers and study its consequences. After fund managers are matched, they improve their risk-adjusted performance significantly. Fund companies use this information to maximize company value by reallocating existing and directing new capital to their matched managers and by collecting higher fees from the matched managers' funds. In addition, they make the expertise of matched managers available to the other managers of the fund company.

Suggested Citation

  • Cici, Gjergji & Hendriock, Mario & Kempf, Alexander, 2022. "Finding your calling: Matching skills with jobs in the mutual fund industry," CFR Working Papers 19-05, University of Cologne, Centre for Financial Research (CFR), revised 2022.
    • Handle: RePEc:zbw:cfrwps:1905
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    human capital; mutual funds; occupational match finding;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General

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