@article{0e52025c4ae54ed990b102ebd15b0b48,
title = "Identity, diversity, and team performance: Evidence from U.S. mutual funds",
abstract = "We examine team diversity and performance in the asset management industry through the lens of identity. Focusing on political ideology as the relevant dimension of identity, we find that diverse teams outperform homogeneous teams. The mechanism involves both improved decision making due to more diverse perspectives and increased monitoring by heterogeneous team members. The benefits of ideological diversity are undone when political polarization is higher, consistent with increased intrateam conflict. In examining why less diverse teams are prevalent in asset management, we find entrenched managers prefer homogeneous teams, and the local labor market supply of ideologically diverse managers is constrained.",
keywords = "Campaign contributions, Dispersion in beliefs, Diversity, Identity, Labor incentives, Mutual fund, PACs, Polarization, Political ideology, Teams",
author = "Evans, {Richard B.} and Prado, {Melissa Porras} and Rizzo, {A. Emanuele} and Rafael Zambrana",
note = "Funding Information: This work was funded by the Funda{\c c}{\~a}o para a Ci{\^e}ncia e a Tecnologia [UID/ECO/00124/2013 and Social Sciences DataLab, Project 22209], POR Lisboa [LISBOA-01-0145-FEDER-007722 and Social Sciences DataLab, Project 22209], and POR Norte [Social Sciences DataLab, Project 22209]. The authors thank Manuel Adelino, Vikas Agarwal, David LeBlang, Andrew Karolyi, Alberto Manconi, Jos\u00E9 Martin-Flores, Pedro Matos, Veronika Pool, Mila Getmansky Sherman, Rui Silva, Craig Volden, Lu Zheng, and seminar participants at the Western Finance Association, Financial Management Association, Banco Portugu\u00EAs de Investimento Asset Management Conference, Annual Meeting of the Spanish Finance Forum Finance Forum, Southern Finance Association, Federal Reserve Bank, Notre Dame, North Carolina State University, Tilburg University, Toulouse School of Economics, Darden School of Business, Central European University, University of Utah, University of Bristol, University of Nottingham, University of Publisher Copyright: {\textcopyright} 2024 INFORMS.",
year = "2025",
month = apr,
doi = "10.1287/mnsc.2022.00544",
language = "English",
volume = "71",
pages = "3026--3051",
journal = "Management Science",
issn = "0025-1909",
publisher = "INFORMS Institute for Operations Research and the Management Sciences",
number = "4",
}