Empirical studies indicate that fund managers with lower experience in comparison to managers with\r\nhigher experience, yield significantly higher return. In this research in order to study professional\r\nexperience of managers and also risk and return of their investment, we dealt with studying impact of\r\nrisk taking, overconfidence and herding behavior (as important behavior on investment decision) of\r\nfund managers in Tehran Stock Exchange. In order to gather data, questionnaires were used, and in\r\norder to analyze them single variable regression model and ordered probit and tobit regression were\r\nused. Results of research indicated that there is an inverse relationship between experience and risk\r\ntaking of managers and there is a direct relationship between experience and herding. Also,\r\nrelationship between experience and overconfidence defers based on the type, but it can be said that\r\nthere is an inverse relationship between experience and overconfidence. Managers with lower\r\nexperience had higher overconfidence and lower herd behavior, higher risk taking and get higher\r\nreturn. Totally, it can be said that there is an inverse relationship between professional experience and\r\nreturn of fund managers in Tehran Stock Exchange.
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