In the name of the law: How does legal distance affect US international mutual funds’ financial performance?

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

Resumen: In this research, we investigate how the distance in legal features between investor and investee countries affects international mutual funds’ financial performance. We analyse a sample formed by 1160 US equity mutual funds in the period 2000–2021 (73,256 monthly portfolios) with an international investment vocation. Our results show that managers of mutual funds holding a portfolio that is exposed to more distant markets in terms of legal features jeopardize the financial performance delivered to investors. We also find a moderating factor whereby investing in larger stock markets alleviates the negative effect of the legal distance.

Idioma: Inglés

DOI: 10.1016/j.ribaf.2024.102661

Año: 2025

Publicado en: RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE 74 (2025), 102661 [25 pp.]
ISSN: 0275-5319

Financiación: info:eu-repo/grantAgreement/ES/AEI/PID2020-113338RB-I00
Financiación: info:eu-repo/grantAgreement/ES/AEI/PID2022-136818NB-I00
Financiación: info:eu-repo/grantAgreement/ES/DGA/LMP175_21
Financiación: info:eu-repo/grantAgreement/ES/DGA/S38-20R-CIBER
Financiación: info:eu-repo/grantAgreement/ES/DGA/S42-23R-CREVALOR
Financiación: info:eu-repo/grantAgreement/ES/UZ-IBERCAJA/JIUZ-2022-CSJ-24
Financiación: info:eu-repo/grantAgreement/ES/UZ/JIUZ-2021-SOC-02

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)