EconPapers    
Economics at your fingertips  
 

Risk, culture and investor behavior in small (but notorious) Eurozone countries

Seungho Lee, Lorne Switzer () and Jun Wang

Journal of International Financial Markets, Institutions and Money, 2019, vol. 60, issue C, 89-110

Abstract: This research investigates how culture moderates the impact of risk on individual investors’ trading behavior in nine Eurozone countries, where risk is measured by conventional and extreme risk. These markets were particularly affected by the global financial crisis, the subsequent European banking crisis, and the European sovereign debt crisis. Using mutual fund flows as proxy of investors’ trading behavior, our evidence indicates that country culture variable significantly affects investor’ trading responsiveness to risk. Specifically, the impact of risk on fund flows is significantly positive and is larger in scale in countries with individualist cultures.

Keywords: Volatility; Extreme risk; Small investor behavior; Country culture (search for similar items in EconPapers)
JEL-codes: G11 G12 G15 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1042443118304451
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:intfin:v:60:y:2019:i:c:p:89-110

DOI: 10.1016/j.intfin.2018.12.010

Access Statistics for this article

Journal of International Financial Markets, Institutions and Money is currently edited by I. Mathur and C. J. Neely

More articles in Journal of International Financial Markets, Institutions and Money from Elsevier
Bibliographic data for series maintained by Nithya Sathishkumar ().

 
Page updated 2021-05-15
Handle: RePEc:eee:intfin:v:60:y:2019:i:c:p:89-110