This should come as no surprise, and I’ve written about it here a little before. Nevertheless, a new paper purports to show (it uses surveys, ick) that finance academics aren’t all that consistent about investing according to their own research.
This paper examines finance professors’ collective opinion on the efficiency of US stock markets and whether their views on the markets’ efficiency influence their investing behavior. We survey close to 4,000 professors, with an 18% response rate and find that most professors tend to believe US stock markets are weak to semi-strong efficient. Interestingly, their individual views on efficiency are not related to their trading behavior. The primary driver of a finance professor’s propensity to actively invest is one’s confidence in his own abilities to beat the market, regardless of his opinion of the efficiency of the US stock market. [Emphasis mine]