Media hostility and international portfolio allocation: Evidence from global funds

Xiao Li, Wenjing Xie, Wenjuan Dong and Runyi Zhou

Research in International Business and Finance, 2025, vol. 75, issue C

Abstract: This paper employs data from 1397 global funds invested in 40 countries to examine the influence of media sentiment on the global fund asset allocation. The findings indicate that media hostility negatively predicts funds' global portfolio allocation. Moreover, the negative effect is diminished when there is greater cultural integration between countries, whereas cultural distance between countries can have the opposite effect. In addition, media hostility is less effective in predicting the asset allocation of global funds that are less risk averse, while it is more susceptible for funds that are more discretionary.

Keywords: media hostility; capital allocation; cultural distance; risk preference; mutual funds (search for similar items in EconPapers)
JEL-codes: F3 F4 F5 G0 G1 I1 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:75:y:2025:i:c:s0275531925000388

DOI: 10.1016/j.ribaf.2025.102782

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