Culture and mutual funds’ performance

Barbara Abou Tanos

Finance Research Letters, 2022, vol. 46, issue PB

Abstract: This paper investigates how culture affects US global mutual funds’ financial performance. I show that cultural dimensions are crucial not only for portfolio allocation choices but also for assessing the performance of institutional investors. Choosing securities from familiar cultural proximate markets significantly enhances the performance of mutual funds. The results suggest that fund managers can create positive performance for their clients if their portfolio allocation decisions are titled towards choosing cultural proximate markets that exhibit lower levels of information asymmetry.

Keywords: Institutional investors; Performance; Culture; Asset allocation (search for similar items in EconPapers)
JEL-codes: G15 G23 Z10 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:46:y:2022:i:pb:s1544612321004463

DOI: 10.1016/j.frl.2021.102466

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