A professor finds gender bias on Wall Street — Lily Fang

MIT Sloan Visiting Associate Professor of Finance Lily Fang

MIT Sloan Visiting Associate Professor of Finance Lily Fang

From Wall Street Journal

Men and women have different experiences when it comes to Wall Street careers. And those differences fascinate Lily Fang.

Dr. Fang, an associate professor of finance on the Singapore campus of the business school Insead, has spent the past five years or so delving into how gender affects the career-development paths of stock-research analysts on Wall Street. What she and co-author Sterling Huang of Singapore Management University found was that the networking and personal connections that male analysts rely on so heavily to get ahead are much less useful for women in similar jobs.

Dr. Fang says the audience for this type of gender research has grown in recent years as it has become apparent that women—despite making great strides in many competitive industries—remain underrepresented in top echelons of the corporate world.

A native of Shanghai with a doctoral degree from the University of Pennsylvania’s Wharton School, Dr. Fang is spending a year as a visiting associate professor at MIT’s Sloan School of Management in Cambridge, Mass.

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Opinion: Even stock traders get the back-to-school blues — and we all feel it — Lily Fang

MIT Sloan Visiting Associate Professor of Finance Lily Fang

MIT Sloan Visiting Associate Professor of Finance Lily Fang

From MarketWatch

It’s widely known on Wall Street that September is the worst month for stocks. This is not just trader superstition. An article published in the Wall Street Journal last year points out that since 1896, the Dow Jones Industrial Average has lost 1.09% in September on average, while returns for every other month average 0.75%. Moreover, September is the only month that shows average declines over the past 20, 50, and 100 years.

While the September swoon is no secret, its precise cause is elusive. Possible explanations for the lower returns range from the complex — one study theorizes that portfolio managers sell stocks with recent losses in September to take advantage of tax breaks before the end of their tax year in October; to the dubious — some strategists claim it’s pure randomness; to the downright bizarre — a study by University of Kansas suggests that the decline in the amount of daylight in New York City in September might spark seasonal affective disorder and make some traders more risk-averse.

Importantly, this lower return was not driven by September alone, even though the September effect is pervasive in the northern hemisphere. Even when September is excluded, there is still a return gap of at least 0.5% between after-holiday months and other times, and the difference remains highly significant.

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