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Law, culture and investment performance: A cross-country analysis

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  • Lin, Anchor Y.
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    Abstract

    This study investigates the investment performance of U.S. investors in foreign equity markets with different law origins and cultural characteristics and the investment performance of foreign investors in the U.S. markets. The finding is consistent with the information asymmetric hypothesis that investors perform better in foreign countries which have a similar legal system and cultural characteristics to their home markets than in counterparty countries. Differences in country-specific factors create information asymmetric barriers which slow information flow and result into poor investment performance.

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    Bibliographic Info

    Article provided by Elsevier in its journal Global Finance Journal.

    Volume (Year): 19 (2009)
    Issue (Month): 3 ()
    Pages: 323-341

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    Handle: RePEc:eee:glofin:v:19:y:2009:i:3:p:323-341

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    Web page: http://www.elsevier.com/locate/inca/620162

    Related research

    Keywords: Law Culture Investment performance Information asymmetry;

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