Do cultural differences affect the share price puzzle?

• DOI: 10.1016/j.mulfin.2024.100873
• Publication Date: 2024-08-17T15:49:48Z
• Authors: Riccardo Ferretti; Pierpaolo Pattitoni; Alessia Pedrazzoli
• Keywords: Affect

We examine the impact of cultural differences on nominal share prices across 63 countries from 2002 to 2018. Using institutional and catering theories, we assess how dimensions—including World Governance Indicators (WGI), legal systems, religious influences, GLOBE dimensions—affect spatial heterogeneity price levels. Our findings indicate that are higher in with common law systems comprehensive information reporting, as these environments tend attract investors. Conversely, traits emphasizing altruistic values correspond lower prices, reflecting preferences individual