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National culture and socially responsible fund flows

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  • Labidi, Chiraz
  • Laribi, Dorra
  • Ureche-Rangau, Loredana

Abstract

We investigate the impact of national culture on socially responsible investment (SRI) fund flows. Drawing on prior literature suggesting that non-financial attributes and social preferences explain SRI decisions, we hypothesize that cultural traits may drive SRI fund flows. We use a dataset covering mutual funds from 45 countries over the period 1997 to 2019. Our results reveal that higher SRI flows are associated with low masculinity and uncertainty avoidance and, to a lesser extent, to high religiosity.

Suggested Citation

  • Labidi, Chiraz & Laribi, Dorra & Ureche-Rangau, Loredana, 2021. "National culture and socially responsible fund flows," Emerging Markets Review, Elsevier, vol. 46(C).
    • Handle: RePEc:eee:ememar:v:46:y:2021:i:c:s1566014120300960
    DOI: 10.1016/j.ememar.2020.100751
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    Cited by:

    1. Gupta, Nilesh & Mishra, Anil V & Jacob, Joshy, 2022. "Prospect theory preferences and global mutual fund flows," Journal of International Money and Finance, Elsevier, vol. 125(C).
    2. Gangi, Francesco & Mustilli, Mario & Varrone, Nicola & Graziano, Domenico, 2023. "Target firms’ characteristics and the effects of sovereign wealth funds’ investments: Does cultural context of SWFs matter?," Research in International Business and Finance, Elsevier, vol. 65(C).

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    More about this item

    Keywords

    National culture; Ethical/socially responsible investment; Mutual fund flows;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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