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

Title:

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

Lee, Seungho, Switzer, Lorne N. and Wang, Jun (2018) Risk, culture and investor behavior in small (but notorious) Eurozone countries. Journal of International Financial Markets, Institutions and Money . (In Press)

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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.

Divisions:Concordia University > John Molson School of Business > Finance
Item Type:Article
Refereed:Yes
Authors:Lee, Seungho and Switzer, Lorne N. and Wang, Jun
Journal or Publication:Journal of International Financial Markets, Institutions and Money
Date:28 December 2018
Funders:
  • Social Sciences and Humanities Research Council (SSHRC)
  • Autorité des Marchés Financiers
  • Dancap Research Fund
Digital Object Identifier (DOI):10.1016/j.intfin.2018.12.010
Keywords:Volatility; Extreme risk; Small investor behavior; Country culture
ID Code:984895
Deposited By: MICHAEL BIRON
Deposited On:16 Jan 2019 18:54
Last Modified:16 Jan 2019 18:54

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