Differences in culture are associated with significant differences in the conduct of mutual fund investors, managers, and families across countries. We find evidence consistent with our six hypotheses on the effects of cultural dimensions on flow-performance sensitivity, flow-fee sensitivity, managerial risk-taking, fund performance, fund fees, and the fraction of indexed funds across 25 countries. We also show that fund conduct is not only affected by the culture of fund domicile but also by the culture of fund family origin. Our results highlight the importance of considering behavioral forces, and culture in particular, when studying mutual fund conduct around the world.

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Mutual funds,Culture,Fund flows,Fund risk-taking,Fund performance,Fund fees,Index funds

• Economics and Business - Social Sciences