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Cultural values and cross‐country differences in responsible investing sectors

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  • Jędrzej Białkowski
  • Laura T. Starks
  • Moritz Wagner

Abstract

Given the large variations in the evolution and the size of the responsible investing (RI) mutual fund sectors across countries, we examine factors affecting their growth. We find that the size of a country's RI fund industry, whether measured relative to the size of the conventional fund industry, total equity market capitalization, or relative to the country's GDP, is strongly related to the country's cultural norms, as measured by dimensions from Hofstede, World Values Survey, or GLOBE. The RI fund sector also increases with the country's wealth, as measured by the GDP per capita.

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  • Jędrzej Białkowski & Laura T. Starks & Moritz Wagner, 2025. "Cultural values and cross‐country differences in responsible investing sectors," International Review of Finance, International Review of Finance Ltd., vol. 25(3), September.
    • Handle: RePEc:bla:irvfin:v:25:y:2025:i:3:n:e70035
    DOI: 10.1111/irfi.70035
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