Do Determinants of Fees Differ between Islamic and Conventional Funds?
Résumé
This paper considers an international sample of conventional and Islamic funds to assess whether countryconditions affect the fund manager fees. Overall, the results strongly show that legal conditions, cultureand political risk have robust effects on fund manager fees. We find that Islamic and conventional funds indeveloping countries with weaker legal settings and higher corruption have higher fixed and performancefees. However, performance fees will be lower and fixed fees will be higher in countries with higher politicalrisk. Overall, Hoefsted’s cultural values significantly affect the fees of managers with robust differential effectsbetween Islamic and conventional funds.