Document Type
Article
Publication Date
12-1-2009
Abstract
Research on college and university endowments frequently refers to the inability of smaller endowments to achieve the strong investment results of much larger endowments. Reasons cited are their lack of a professional investment staff and their lack of access to superior money managers. Yet there are many smaller endowments with long-term performance records that rival those of much larger endowments. This qualitative study explores factors that differentiate top-quartile and bottom-quartile endowments in the $100 million to $200 million size over a 10-year period. Findings reveal a number of personality and risk-related factors that distinguish top and bottom performers. They suggest that campus fiduciaries are well-advised to select Investment Committee members and consultants with expertise in multiple asset classes who have a strong sense of control and responsibility over decisions. Endowment teams with greater investment knowledge perceive relatively less risk in alternative investments and are more satisfied with performance outcome.
Keywords
endowments, risk perception, group efficacy, collective agency, team locus of control, knowledge, absorptive capacity, college endowment, performance
Rights
© The Author(s). Kelvin Smith Library provides access for non-commercial, personal, or research use only. All other use, including but not limited to commercial or scholarly reproductions, redistribution, publication or transmission, whether by electronic means or otherwise, without prior written permission is strictly prohibited.
Department/Center
Design & Innovation
Recommended Citation
Lord, Mimi, "Smaller College Endowments: Exploring the Links Between Personality Characteristics, Risk Perceptions, and Investment Performance" (2009). Student Scholarship. 383.
https://commons.case.edu/studentworks/383