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Culture and mutual funds’ performance

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  • Tanos, Barbara Abou

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.

Suggested Citation

  • Tanos, Barbara Abou, 2022. "Culture and mutual funds’ performance," Finance Research Letters, Elsevier, vol. 46(PB).
    • Handle: RePEc:eee:finlet:v:46:y:2022:i:pb:s1544612321004463
    DOI: 10.1016/j.frl.2021.102466
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    More about this item

    Keywords

    Institutional investors; Performance; Culture; Asset allocation;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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