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Does cultural distance matter in international stock market comovement? Evidence from emerging economies around the world

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  • Lucey, Brian M.
  • Zhang, QiYu

Abstract

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.

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Bibliographic Info

Article provided by Elsevier in its journal Emerging Markets Review.

Volume (Year): 11 (2010)
Issue (Month): 1 (March)
Pages: 62-78

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Handle: RePEc:eee:ememar:v:11:y:2010:i:1:p:62-78

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Web page: http://www.elsevier.com/locate/inca/620356

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Keywords: Emerging markets International stock market comovement Cultural distance;

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References

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Citations

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Cited by:
  1. Brian M Lucey & Cal Muckley, 2011. "Robust Global Stock Market Interdependencies," The Institute for International Integration Studies Discussion Paper Series iiisdp353, IIIS.
  2. Diyarbakirlioglu, Erkin, 2011. "Domestic and foreign country bias in international equity portfolios," Journal of Multinational Financial Management, Elsevier, vol. 21(5), pages 301-329.
  3. Annie Tubadji & Peter Nijkamp, 2012. "Altruism to Strangers for our Own Sake: Domestic Effects from Immigration," Tinbergen Institute Discussion Papers 12-079/3, Tinbergen Institute.

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