Uncertainty avoidance and mutual funds

Bibliographic Details
Main Author: Keswani, A.
Publication Date: 2020
Other Authors: Medhat, M., Miguel, A. F., Ramos, S. B.
Format: Article
Language: eng
Source: Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
Download full: http://hdl.handle.net/10071/21314
Summary: 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.
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spelling Uncertainty avoidance and mutual fundsMutual fundsCultureUncertainty avoidanceFund flowsAmbiguityKnightian uncertaintyWe 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.Elsevier2022-10-05T00:00:00Z2020-01-01T00:00:00Z20202021-01-18T12:30:45Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10071/21314eng0929-119910.1016/j.jcorpfin.2020.101748Keswani, A.Medhat, M.Miguel, A. F.Ramos, S. B.info:eu-repo/semantics/openAccessreponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiainstacron:RCAAP2024-07-07T03:50:06Zoai:repositorio.iscte-iul.pt:10071/21314Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireinfo@rcaap.ptopendoar:https://opendoar.ac.uk/repository/71602025-05-28T18:32:48.833535Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiafalse
dc.title.none.fl_str_mv Uncertainty avoidance and mutual funds
title Uncertainty avoidance and mutual funds
spellingShingle Uncertainty avoidance and mutual funds
Keswani, A.
Mutual funds
Culture
Uncertainty avoidance
Fund flows
Ambiguity
Knightian uncertainty
title_short Uncertainty avoidance and mutual funds
title_full Uncertainty avoidance and mutual funds
title_fullStr Uncertainty avoidance and mutual funds
title_full_unstemmed Uncertainty avoidance and mutual funds
title_sort Uncertainty avoidance and mutual funds
author Keswani, A.
author_facet Keswani, A.
Medhat, M.
Miguel, A. F.
Ramos, S. B.
author_role author
author2 Medhat, M.
Miguel, A. F.
Ramos, S. B.
author2_role author
author
author
dc.contributor.author.fl_str_mv Keswani, A.
Medhat, M.
Miguel, A. F.
Ramos, S. B.
dc.subject.por.fl_str_mv Mutual funds
Culture
Uncertainty avoidance
Fund flows
Ambiguity
Knightian uncertainty
topic Mutual funds
Culture
Uncertainty avoidance
Fund flows
Ambiguity
Knightian uncertainty
description 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.
publishDate 2020
dc.date.none.fl_str_mv 2020-01-01T00:00:00Z
2020
2021-01-18T12:30:45Z
2022-10-05T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10071/21314
url http://hdl.handle.net/10071/21314
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 0929-1199
10.1016/j.jcorpfin.2020.101748
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv reponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
instacron:RCAAP
instname_str FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
instacron_str RCAAP
institution RCAAP
reponame_str Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
collection Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
repository.name.fl_str_mv Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
repository.mail.fl_str_mv info@rcaap.pt
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