Explaining the size of the mutual fund industry around the world

Khorana, Ajay; Servaes, Henri; Tufano, Peter

doi:10.1016/j.jfineco.2004.08.006

Cited by 300 publications

(169 citation statements)

References 15 publications

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“…to GDP (liquid liabilities ratio), the ratio of remittance infl ows to GDP (remittance), the ratio of international debt issues to GDP (international debt), and an indicator measuring the fraction of assets held by the top three banks in the system (bank concentration) as in Khorana et al (2005). All these variables are from the datasets of Beck et al (2000), last updated in November 2011 5 .…”

Section: Data and Methodsologymentioning

confidence: 99%

“…We use average years of secondary schooling (school years [sec]) as in Khorana et al (2005) 7 , the age of the mutual fund industry in each country 8 (industry age) as in Khorana et al (2005), and a dummy variable for Common law countries as in La Porta et al (1998). Common law is a dummy variable equal to 1 for a country with British legal origin and 0 otherwise.…”

Section: Data and Methodsologymentioning

confidence: 99%

“…Previous works on this topic (e.g. Klapper et al, 2004;Khorana et al, 2005) have focussed specifi cally on fi nancial, socio-economic, and political aspects as factors that drive the size of mutual funds. Our paper draws on a more comprehensive set of variables and analyses them over a 14-year period 2 .…”

Section: Introductionmentioning

confidence: 99%

“…As a measure of industry development, we used the industry age based on the assumption that the creation of a mutual fund or the legal provisions for this industry alone are not suffi cient to determine positive effects on the economy (Khorana et al, 2005;Ferreira et al, 2013).…”

mentioning

confidence: 99%

“…We excluded Luxembourg, Ireland, and Hong Kong given their abnormal ratios of net asset values to GDP and very high net asset values per capita. Klapper et al (2004) and Khorana et al (2005) also excluded two outliers, Luxembourg and Ireland, from their analysis. Supplementary tests based on studentized residuals indicated Australia (for the third sub-period) as an extreme outlier; therefore this observation was not included in our analysis.…”

mentioning

confidence: 99%

See 4 more Smart Citations

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

Dragotă¹,

Tatu-Cornea²,

Tulbure³

2016

Prague Economic Papers

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The mutual fund industry has grown considerably in many countries since the 1990s. Its evolution has been explained primarily in terms of its economic and fi nancial determinants. We draw on a dynamic set of measures for socio-cultural values to explain the diff erential development of mutual funds across the world. Using a sample of 38 countries for the period 1996-2009, we fi nd a positive relation between the perception of happiness and the size of the mutual fund industry. Freedom of choice, a feature of countries that are dominated by individualistic behaviours and values, has a positive impact on the development of the industry. We also explain the positive relation between individuals' preference for private ownership and the development of mutual funds. Moreover, we prove that the industry is larger in developed countries with greater stock market liquidity, with low ratios of remittance infl ows to GDP, and in which the industry is older.

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Section: Data and Methodsologymentioning

confidence: 99%

Section: Data and Methodsologymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 99%

mentioning

confidence: 99%

See 3 more Smart Citations

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

Dragotă¹,

Tatu-Cornea²,

Tulbure³

2016

Prague Economic Papers

View full text Add to dashboard Cite

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The Economics of Mutual Funds

Smith

2009

Mutual Funds

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Is ESG mutual fund quality in the eye of the beholder? An experimental study of investor responses to ESG fund strategies

Hauff

Nilsson

2022

Bus Strat Env

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ESG-profiled mutual funds (funds incorporating some form of Environmental, Social, or Governance-related concern) is an increasingly prominent part of the financial services industry. While this category of funds may look homogenous on the surface, the fact is that there is there is considerable variation in how funds choose to account for ESG concern in the investment portfolio. In this paper, we ask whether these strategic choices surrounding the implementation of ESG affect retail investors' perception of sustainable quality, financial quality, and/or perceived overall quality of the ESG-fund. Through two experiments (n = 261; n = 437), we find that choice of ESG-strategy (exclusion, inclusion, or engagement) impacts perceived mutual fund quality, with a marked preference for the inclusion strategy. Surprisingly, however, we find that the impact on overall fund quality is mediated by perceived financial quality, not perceived sustainable quality. In a similar fashion, we also find that implementing the strategy through in-house sustainability experts, as opposed to relying on external sustainability expertise, positively affect perceived quality, through perceived financial quality. In all, these results highlight that the manner in which ESGfactors are integrated in the investment portfolio can affect perceived quality of mutual funds, as investors consciously or unconsciously assign different financial expectations to the strategies.

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Explaining the size of the mutual fund industry around the world

Cited by 300 publications

References 15 publications

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

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

The Economics of Mutual Funds

Is ESG mutual fund quality in the eye of the beholder? An experimental study of investor responses to ESG fund strategies

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