Todea, A. & Harin, C. (2024) European Journal of Finance [Core Economics, Q2]

Publicat: 19 Iulie 2024

Todea, A. & Harin, C. (2024) The influence of cultural norms on international equity allocation. European Journal of Finance, 30(12),1362-1385

DOI: https://doi.org/10.1080/1351847X.2023.2291124

✓ Publisher: Taylor & Francis
✓ Categories: Business, Finance
✓ Article Influence Score (AIS): 0.606 (2023) / Q2

Abstract: We investigate the effect of cultural tightness-looseness on foreign bias in international equity allocation using data for 29 home investor countries and 37 destination countries for the period 2001-2018. We find that investors from a tight (loose) culture will exhibit less (more) portfolio diversification among foreign markets. Further, cultural tightness-looseness moderates the effect of Hofstede's cultural values on foreign portfolio allocation decisions differently and depending on the cultural dimension analyzed. The consideration of cultural tightness-looseness in the models diminishes the contradictory and inconclusive results regarding the relationships between cultural values and foreign bias from previous studies. These results hold for various robustness checks.

inapoi la stiri   vezi evenimentele   home