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Publication Detailed Description
Journal Title
Journal of Corporate Finance
Year (definitive publication)
2020
Language
English
Country
Netherlands
More Information
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Abstract
We study how culture influences mutual funds around the world. Uncertainty Avoidance (UA), which is related to ambiguity aversion, is negatively associated with flow-performance sensitivity, deviation from the fund benchmark, fund alpha, and the fraction of active management across the 25 countries in our sample. This is true even when controlling for an exhaustive set of fund- and country-level characteristics. We also find that a fund’s deviation from its benchmark is not only affected by the UA of its domicile country but also by the UA of its fund family’s country of origin. Our results highlight the importance of considering cultural characteristics, and UA in particular, when studying mutual funds across countries.
Acknowledgements
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Keywords
Mutual funds,Culture,Uncertainty avoidance,Fund flows,Ambiguity,Knightian uncertainty
Fields of Science and Technology Classification
- Economics and Business - Social Sciences
Funding Records
| Funding Reference | Funding Entity |
|---|---|
| PTDC/IIM-FIN/1500 | Fundação para a Ciência e a Tecnologia |
| UIDB/00315/2020 | Fundação para a Ciência e a Tecnologia |
Contributions to the Sustainable Development Goals of the United Nations
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