The Impact of a Fund Network on Fund Managers' Disposition Effect: Evidence from China*

This study examines whether and how fund networks influence the disposition effect of fund managers. We use quarterly data from Chinese open‐ended equity funds for the period from 2013 to 2024. First, we demonstrate a negative relationship between fund networks and fund managers' disposition effects, indicating that the higher the centrality of the fund network, the lower the disposition effect of fund managers. Second, fund managers' stock‐picking and market‐timing abilities play a U‐shaped moderating role in the relationship between network centrality and the disposition effect. Finally, higher fund performance ranking, industry concentration, and economic policy uncertainty weaken the negative impact of fund networks on the disposition effect of fund managers. This study provides better insights into how fund networks affect fund managers' dispositions.