In the name of the law: How does legal distance affect US international mutual funds’ financial performance?
Year: 2024
Type: article
Abstract: In this research, we investigate how the distance in legal features between investor and investee countries affects international mutual funds’ financial performance. We analyse a sample formed by 1160 US equity mutual funds in the period 2000–2021 (73,256 monthly portfolios) with an international investment vocation. Our results show that managers of mutual funds holding a portfolio that is exposed to more distant markets in terms of legal features jeopardize the financial performance delivered to investors. We also find a moderating factor whereby investing in larger stock markets alleviates the negative effect of the legal distance.
Authors: Jorge Fleta-Asín, Fernando Muñoz
Institution: Universidad de Zaragoza
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $3,370
Awards: G2262748287, G2400980302, G2601256154, G2743707966, G3020948319, CIBER- Análisis Económico Financiero de la empresa y los mercados., G3480869486, G3845300180, G4101812628, G425668148, G451917667, G4703636541, G4959625945, G586857820, G5886777856, G5889599145, G5967599077, G6194131927, G6695582236, CREVALOR, G6731524417, G7084143925, G7863371703, G8035980807, G8088712898, G8497050386, G994799281
OpenAlex ID: W4404646182