Does culture influence asset managers' views and behavior?

Daniela Beckmann, Lukas Menkhoff*, Megumi Suto

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    69 Citations (Scopus)


    This research enters new ground by presenting comparative survey evidence on asset managers' views and behavior in the United States, Germany, Japan and Thailand. Relying on Hofstede's four cultural dimensions, we find that cultural differences are most helpful in understanding country differences which cannot be explained by pure economic reasoning. In short, controlling for various determinants, the dimension of more Individualism predicts less herding behavior, more Power Distance leads to older and comparatively less experienced managers in the upper hierarchy, Masculinity brings men into top positions and to higher volumes of assets under personal responsibility, and Uncertainty Avoidance is related to higher safety margins against the tracking error allowed and relatively more research effort. These consequences, i.e. the culturally different importance of herding, age, experience, gender, tracking error and research effort, clearly affect investment behavior, although in a complex way.

    Original languageEnglish
    Pages (from-to)624-643
    Number of pages20
    JournalJournal of Economic Behavior and Organization
    Issue number3-4
    Publication statusPublished - 2008 Sept


    • Asset managers
    • Individualism
    • Masculinity
    • Power Distance
    • Uncertainty Avoidance

    ASJC Scopus subject areas

    • Organizational Behavior and Human Resource Management
    • Economics and Econometrics


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