CULTURE AND STOCK PRICE REACTION TO PRIVATE INFORMATION
CULTURE AND STOCK PRICE REACTION TO PRIVATE INFORMATION
Author(s): Anita TodeaSubject(s): Business Economy / Management, Financial Markets, Accounting - Business Administration
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: price informativeness; private information; individualism; uncertainty avoidance; firm-specific information; financial opennes;
Summary/Abstract: This paper examines the impact of culture on stock price informativeness in a sample of firms from 23 developed stock markets. We find that the information content of private information in stock prices is higher in more individualistic countries and in low uncertainty-avoiding countries. Moreover, financial openness stimulates the incorporation of private information into individualistic countries and in low uncertainty-avoiding countries.
Journal: Review of Economic and Business Studies (REBS)
- Issue Year: 2018
- Issue No: 21
- Page Range: 117-130
- Page Count: 15
- Language: English
