Are good managers also good investors? Common factors of managerial and investment performance of majority owners of SICAVs
Abstract
This research explores and tests the existence of common factors of success in both managerial and investment activities performed by the same individual, defined as ‘manager-investor.’ After reviewing the existing theoretical literature, we identified theoretical developments and evidence that emphasize the role of individual-related characteristics as determinants of the performance of managerial actions as well as investment decisions.  We test the resulting hypothesis using a database comprising information from managerial and investment decisions of 147 entrepreneurs-investors. Panel models and simultaneous equation models (estimated by 3SLS) are proposed as empirical methods in order to assure a proper treatment of the potential unobserved heterogenity and endogeneity issues.
Keywords: managerial resources, skills, investment capabilities, SICAV, panel data estimation, three-stage least square method
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