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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… Click to show full abstract
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.
Journal Title: Finance Research Letters
Year Published: 2021
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