Portfolio's weighted political risk and mutual fund performance: A text-based approach

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dc.citation.volume66
dc.contributor.authorNguyen HG
dc.contributor.authorHoang K
dc.contributor.authorNguyen QMP
dc.contributor.authorDo HX
dc.contributor.authorNguyen DK
dc.date.accessioned2024-08-09T03:11:35Z
dc.date.available2024-08-09T03:11:35Z
dc.date.issued2024-08
dc.description.abstractUsing text-based measures of firm-level political risk, we find a negative impact of the portfolio's weighted political risk on U.S. mutual fund performance. This relationship is robust to a wide range of topic-specific political risks at the firm level. We, however, find that national geopolitical risk, the U.S. state-level economic policy uncertainty, and Brexit-induced risk do not affect mutual fund performance. Our results suggest that even though mutual funds are immune from political risk at the macro level, they are significantly exposed to idiosyncratic political risk. We also demonstrate that partisanship matters to mutual fund performance.
dc.description.confidentialfalse
dc.edition.editionAugust 2024
dc.identifier.citationNguyen HG, Hoang K, Nguyen QMP, Do HX, Nguyen DK. (2024). Portfolio's weighted political risk and mutual fund performance: A text-based approach. Finance Research Letters. 66.
dc.identifier.doi10.1016/j.frl.2024.105728
dc.identifier.eissn1544-6131
dc.identifier.elements-typejournal-article
dc.identifier.issn1544-6123
dc.identifier.number105728
dc.identifier.piiS154461232400758X
dc.identifier.urihttps://mro.massey.ac.nz/handle/10179/71250
dc.languageEnglish
dc.publisherElsevier Inc
dc.publisher.urihttps://www.sciencedirect.com/science/article/pii/S154461232400758X
dc.relation.isPartOfFinance Research Letters
dc.rights(c) 2024 The Author/s
dc.rightsCC BY 4.0
dc.rights.urihttps://creativecommons.org/licenses/by/4.0/
dc.subjectBrexit risk
dc.subjectGeopolitical risk
dc.subjectMutual fund
dc.subjectPerformance
dc.subjectPolicy uncertainty
dc.subjectPolitical risk
dc.titlePortfolio's weighted political risk and mutual fund performance: A text-based approach
dc.typeJournal article
pubs.elements-id489467
pubs.organisational-groupOther
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