Institutional distance and US-based international mutual funds’ financial performance

Fleta-Asín, Jorge (Universidad de Zaragoza) ; Muñoz, Fernando (Universidad de Zaragoza)

Resumen: In this research, we analyse the impact of the institutional distance between investor and investee countries on the risk-adjusted financial performance for a broad sample of US-based international mutual funds in the period 1997-2021 (1,704 equity mutual funds/106,521 monthly portfolios). Our results show that a greater institutional distance jeopardizes mutual fund financial performance. Another relevant finding is that holding a more country-concentrated portfolio positively impacts financial performance. In addition, we reveal an interaction effect between the two variables, meaning that the portfolio country concentration moderates the negative impact of institutional distance, supporting the information advantage theory.

Idioma: Inglés

DOI: 10.1016/j.frl.2022.103412

Año: 2023

Publicado en: Finance Research Letters 51 (2023), 103412 [11 pp.]
ISSN: 1544-6123

Factor impacto JCR: 7.4 (2023)

Categ. JCR: BUSINESS, FINANCE rank: 7 / 233 = 0.03 (2023) - Q1 - T1

Factor impacto CITESCORE: 11.1 - Finance (Q1)

Factor impacto SCIMAGO: 1.903 - Finance (Q1)

Financiación: info:eu-repo/grantAgreement/ES/DGA/LMP175_21
Financiación: info:eu-repo/grantAgreement/ES/DGA/S38-20R
Financiación: info:eu-repo/grantAgreement/ES/DGA/S42-20R-CREVALOR
Financiación: info:eu-repo/grantAgreement/ES/MCIU-AEI-FEDER/RTI2018-093483-B-I00
Financiación: info:eu-repo/grantAgreement/ES/MICINN/PID2020-113338RB-I00
Financiación: info:eu-repo/grantAgreement/ES/UZ/JIUZ-2021-SOC-03

Tipo y forma: Article (Published version)

Área (Departamento): Área Organización de Empresas (Dpto. Direcc.Organiza.Empresas)
Área (Departamento): Área Economía Finan. y Contab. (Dpto. Contabilidad y Finanzas)