The gravity of culture for finance

G. Karolyi ()

Journal of Corporate Finance, 2016, vol. 41, issue C, 610-625

Abstract: Scholarship in finance has paid relatively little attention to the role of culture in financial decision-making compared to other business disciplines and economics. This paper will review what research has been done to date including a critical assessment of the key databases used to measure differences in cultural values. Notwithstanding the concerns with the measures of cultural values, I conduct an empirical analysis of the role of cultural distance for explaining the foreign bias in international portfolio holdings using traditional gravity models in international economics. I affirm the statistical explanatory power of culture for these investment biases and outline several new potential directions for research.

Keywords: Culture; International portfolio choices; Gravity models; Research trends in finance (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (105)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0929119916300761
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:41:y:2016:i:c:p:610-625

DOI: 10.1016/j.jcorpfin.2016.07.003

Access Statistics for this article

Journal of Corporate Finance is currently edited by A. Poulsen and J. Netter

More articles in Journal of Corporate Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().