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Impact of Hofstede's Cultural Dimensions on Mutual Fund Performance: An Empirical Analysis Across Europe and Asia

Thanigaivelu, Abinaya LU and Rafenomanjato, Alix LU (2024) BUSN79 20241
Department of Business Administration
Abstract
Title: Impact of Hofstede's Cultural Dimensions on Mutual Fund Performance: An Empirical Analysis Across Europe and Asia
Seminar Date: 30 May, 2024
Course: BUSN79, Degree Project in Accounting and Finance
Authors: Rafenomanjato Alix, Thanigaivelu Abinaya
Purpose: The thesis aims to explore how Hofstede's cultural dimensions influence mutual fund performance, examining the impact of cultural traits on financial outcomes in a globalized market.
Methodology: Our paper employs multiple linear regression with quadratic terms, robust standard errors, robustness tests using a different metric than the main model, dummy variables, t-tests for group comparisons, and variance inflation factor tests.
Theoretical perspectives: The theories... (More)
Title: Impact of Hofstede's Cultural Dimensions on Mutual Fund Performance: An Empirical Analysis Across Europe and Asia
Seminar Date: 30 May, 2024
Course: BUSN79, Degree Project in Accounting and Finance
Authors: Rafenomanjato Alix, Thanigaivelu Abinaya
Purpose: The thesis aims to explore how Hofstede's cultural dimensions influence mutual fund performance, examining the impact of cultural traits on financial outcomes in a globalized market.
Methodology: Our paper employs multiple linear regression with quadratic terms, robust standard errors, robustness tests using a different metric than the main model, dummy variables, t-tests for group comparisons, and variance inflation factor tests.
Theoretical perspectives: The theories discussed in the study are Hofstede's cultural dimensions.
Empirical foundation: The sample consists of 5,768 Lipper open-end mutual funds from Europe and Asia. The study includes funds from 53 countries with Hofstede cultural dimension scores. A random sampling method was used to select funds with an issue date > 5 years without limit.
Conclusions: Individualism, low Power Distance, and high Uncertainty Avoidance positively influence mutual fund performance. Long-Term Orientation shows mixed results, sometimes detracting from short-term gains but benefiting long-term stability. Indulgence is positively associated with performance in the main model but shows a negative effect in robustness checks. Motivation Towards Achievement and Success does not significantly impact performance. (Less)
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author
Thanigaivelu, Abinaya LU and Rafenomanjato, Alix LU
supervisor
organization
course
BUSN79 20241
year
type
H1 - Master's Degree (One Year)
subject
keywords
Mutual Funds, Hofstede’s cultural dimensions, Sharpe Ratio, Rolling Performance
language
English
id
9167225
date added to LUP
2024-06-23 00:20:51
date last changed
2024-06-23 00:20:51
@misc{9167225,
  abstract     = {{Title: Impact of Hofstede's Cultural Dimensions on Mutual Fund Performance: An Empirical Analysis Across Europe and Asia
Seminar Date: 30 May, 2024
Course: BUSN79, Degree Project in Accounting and Finance
Authors: Rafenomanjato Alix, Thanigaivelu Abinaya
Purpose: The thesis aims to explore how Hofstede's cultural dimensions influence mutual fund performance, examining the impact of cultural traits on financial outcomes in a globalized market.
Methodology: Our paper employs multiple linear regression with quadratic terms, robust standard errors, robustness tests using a different metric than the main model, dummy variables, t-tests for group comparisons, and variance inflation factor tests.
Theoretical perspectives: The theories discussed in the study are Hofstede's cultural dimensions.
Empirical foundation: The sample consists of 5,768 Lipper open-end mutual funds from Europe and Asia. The study includes funds from 53 countries with Hofstede cultural dimension scores. A random sampling method was used to select funds with an issue date > 5 years without limit.
Conclusions: Individualism, low Power Distance, and high Uncertainty Avoidance positively influence mutual fund performance. Long-Term Orientation shows mixed results, sometimes detracting from short-term gains but benefiting long-term stability. Indulgence is positively associated with performance in the main model but shows a negative effect in robustness checks. Motivation Towards Achievement and Success does not significantly impact performance.}},
  author       = {{Thanigaivelu, Abinaya and Rafenomanjato, Alix}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Impact of Hofstede's Cultural Dimensions on Mutual Fund Performance: An Empirical Analysis Across Europe and Asia}},
  year         = {{2024}},
}