Determinants of Development of the Mutual Fund Industry. A Socio-Cultural Approach

Dragotă, Ingrid-Mihaela; Tatu-Cornea, Delia; Tulbure, Narcis

doi:10.18267/j.pep.572

Cited by 9 publications

(3 citation statements)

References 33 publications

(47 reference statements)

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“…Thus, the features of the first level, here culture, impact the second level, namely, the formal institutions. Viewed from this lens, cultural finance highlights that characteristics and restrictions of capital markets are subject to cultural differences, as illustrated in market capitalization of the mutual funds market (Dragota et al, 2016).…”

Section: A Conceptual Framework For Cultural Financementioning

confidence: 99%

Cultural Finance: how is financial information received?

Alemanni¹,

Mousavi²

2021

Financial Education and Risk Literacy

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Section: A Conceptual Framework For Cultural Financementioning

confidence: 99%

Cultural Finance: how is financial information received?

Alemanni¹,

Mousavi²

2021

Financial Education and Risk Literacy

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“…The assumption that the announcement of positive book results will determine a better share price has not been verified for all types of financial information available. Dragotă et al (2016) conducted an analysis of the socio-economic factors that influence the development of the mutual funds in Romania. Also, Tudorache et al (2015) looked at the evolution of mutual funds in Romania from the returns and risks' perspectives (Simionescu, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

Performance risk analysis on mutual funds versus stock exchanges in young financial markets

Nicolescu¹,

Tudorache²,

Androniceanu³

2020

Journal of International Studies

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Financial markets play an important role in the economies of the world as they are supporting economic development. The present paper focuses on the young financial markets of Central and Eastern Europe with the focus on three selected cases: Romania, Slovakia and Hungary. In these countries, the capital markets are studied through the assessment of performances and risks associated with mutual funds by comparison with stock exchanges. Statistical documentation and statistical empirical research were used in order to compare mutual funds' evolution with the stock markets' evolution. The period of analysis also comprised the global financial and economic crisis, with obvious consequences on the results of the analysis. Among the main findings of the study are: mutual funds performed better (both in terms of returns and risks) than stock exchanges in the periods of economic turmoil; a movement from investing in highrisk assets (equity) towards investing in low-risk assets (bonds and monetary assets) takes place in the periods of economic distress; there were more similarities than differences in the evolutions of mutual funds and stock exchanges in these three countries, illustrating common characteristics at the

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“…The studies conducted so far in CEE that considered mutual funds focused mainly on the presentation of the evolution and performance of mutual funds (Filip, 2017a(Filip, , 2017b(Filip, , 2018(Filip, , 2020Tudorache, 2012;Rejnus, 2015a, 2015b;Tudorache et al, 2015;Tudorache, 2017, 2018) or the macroeconomic factors affecting the development of the financial industry (Bajus and Stasova, 2015;Lemeshko and Rejnus, 2015b;Dragot a et al, 2016;Androniceanu et al, 2019).Very few of the studies in the region considered the investor's behaviour (Brokesova et al, 2017;Tudorache and Nicolescu, 2016) and financial conduct of investors (Swiecka et al, 2020). Given the fact that in general investment behaviour differs from one country to another (Ferreira et al, 2012;Sindelar and Budinski, 2019;Hamori, 2020) and the comparison between countries in the region of CEE is scarce (Filip, 2018), the actual research tries to fill in this research gap and we forward the following research question:…”

Section: Introductionmentioning

confidence: 99%

Investment behaviour in mutual funds: is it a knowledge-based decision?

Nicolescu

Tudorache

2020

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Purpose This paper aims to make an analysis of investment behaviour in mutual funds, by looking at different investment decision influencers and trying to identify the extent to which the investment decision is knowledge-based. The paper has three main purposes, namely, to assess the degree to which the considered factors influence investment decision-making in young capital markets from Central and Eastern Europe (CEE); to compare the investment behaviour in the three considered countries; and to characterise investment behaviour in periods of economic turbulence. Design/methodology/approach The researchers considered a model of investment behaviour comprising six influencing factors. Inferential statistics through multiple linear regression was applied using the MATLAB R2014a software. The decision to invest was measured by the flow of new capital attracted by the fund (dependent variable) and the considered influencing factors (independent variables) were: the size of the fund, the risk associated to the fund, the growth of the fund, the growth of the fund category, the performance of the fund in its category. The research was conducted in Romania, Slovakia and Hungary. The period of study included the global economic crisis of 2007-2008. Findings The results illustrated that all considered factors do have an influence on the investment behaviour of investors in CEE, but with different levels of impact. The study concludes that the investment decision is partially knowledge-based, as investors in the region consider only some of the available information when making the decision to invest. Investment behaviour of investors in CEE is rather similar than dissimilar when deciding to invest in mutual funds. However, based on the differences between countries, it can be stated that the Hungarian investor is more mature and more informed than the others, when making investment decisions. Originality/value The study contributes to the exiting literature through the analysis of investment behaviour in young capital markets that are less studied in the literature. The limited number of studies considering mutual funds, usually comprise one fund category, while the present research considers all five most prevalent mutual funds categories for the studied period. It also contributed by collecting data from a less studied geographical region, CEE with three specific case studies, namely, Romania, Slovakia and Hungary that are looked at in a comparative manner.

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Determinants of Development of the Mutual Fund Industry. A Socio-Cultural Approach

Cited by 9 publications

References 33 publications

Cultural Finance: how is financial information received?

Cultural Finance: how is financial information received?

Performance risk analysis on mutual funds versus stock exchanges in young financial markets

Investment behaviour in mutual funds: is it a knowledge-based decision?

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