Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
}
TY - JOUR
T1 - Does cultural distance matter in international stock market comovement? Evidence from emerging economies around the world
AU - Lucey, Brian
AU - Zhang, Qiyu
PY - 2010/3
Y1 - 2010/3
N2 - Prior research suggests an inverse relationship between geographic distance and financial market linkages. In this paper, we examine whether and how cultural distance between countries mitigates this finding. We find that country-pairs exhibit higher linkages if they have smaller cultural distance. The result remains significant to alternative measures of linkage. Finally, the cultural effect seems to be more pronounced for active-trading country-pairs than thin-trading country-pairs.
AB - Prior research suggests an inverse relationship between geographic distance and financial market linkages. In this paper, we examine whether and how cultural distance between countries mitigates this finding. We find that country-pairs exhibit higher linkages if they have smaller cultural distance. The result remains significant to alternative measures of linkage. Finally, the cultural effect seems to be more pronounced for active-trading country-pairs than thin-trading country-pairs.
KW - Emerging markets
KW - International stock market comovement
KW - Cultural distance
U2 - 10.1016/j.ememar.2009.11.003
DO - 10.1016/j.ememar.2009.11.003
M3 - Journal article
VL - 11
SP - 62
EP - 78
JO - Emerging Markets Review
JF - Emerging Markets Review
SN - 1566-0141
IS - 1
ER -