Wu, Haili;
(2023)
A Qualitative and Quantitative Analysis of the Impact of Eco-Cultural Background on Investment Decision Making by Professional Fund Managers.
Doctoral thesis (Ph.D), UCL (University College London).
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Abstract
Theories of cultural psychology, cultural finance, and sociology provided the foundation for a cross-cultural model of investment decision making. Using a combination of interviews and self-report questionnaires with fund managers from China and the West (72 interviews and 187 questionnaires respectively) it was found that five key investment behaviours differed between Chinese and Western fund managers. These included preference towards macroeconomic information, top-down stock selection, utilising contextual information in management evaluation, choice of average holding period, and holding time for a losing stock. It was further found that individualistic cultural values and holistic thinking, which in the research of cross-cultural behavioural differences have traditionally been observed as influential, were not mediating factors in investment decision making. In contrast, the economic context of a fund manager’s domestic country was identified as an influential factor in the development of a mindset supportive of investment decision making. Similarly, cross-cultural differences in the use of intuition during the investment decision making process were found to relate more to contextual factors (i.e., Chinese or Western market) rather than individuals’ cognitive style. On the other hand, personal cognitive style are expected to impact the association between one investment behavioural difference - the choice of average holding period, and investment returns. In other words, opting for a longer holding period is only detrimental in the case of fund managers who display a greater than average preference for holistic thinking, regardless of cultural background. These findings both support and extend the current financial literature and have implications for investment practice, investors’ education, and policy making.
| Type: | Thesis (Doctoral) |
|---|---|
| Qualification: | Ph.D |
| Title: | A Qualitative and Quantitative Analysis of the Impact of Eco-Cultural Background on Investment Decision Making by Professional Fund Managers |
| Open access status: | An open access version is available from UCL Discovery |
| Language: | English |
| Additional information: | Copyright © The Author 2022. Original content in this thesis is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) Licence (https://creativecommons.org/licenses/by-nc/4.0/). Any third-party copyright material present remains the property of its respective owner(s) and is licensed under its existing terms. Access may initially be restricted at the author’s request. |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > School of Life and Medical Sciences UCL > Provost and Vice Provost Offices > School of Life and Medical Sciences > Faculty of Brain Sciences UCL > Provost and Vice Provost Offices > School of Life and Medical Sciences > Faculty of Brain Sciences > Div of Psychology and Lang Sciences |
| URI: | https://discovery-pp.ucl.ac.uk/id/eprint/10163815 |
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