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Culture And Stock Price Reaction To Private Information

Author

Listed:
  • ANITA TODEA

    (Department of Statistics, Forecasting, Mathematics, Faculty of Economics and Business Administration, Babes-Bolyai University, TeodorMihali 58-60, 400591 Cluj-Napoca, Romania. Tel. +40.264 41 86 52,)

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.

Suggested Citation

  • Anita Todea, 2018. "Culture And Stock Price Reaction To Private Information," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 21, pages 117-130, June.
    • Handle: RePEc:aic:revebs:y:2018:j:21:todeaa
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    References listed on IDEAS

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    More about this item

    Keywords

    price informativeness; private information; individualism; uncertainty avoidance; firm-specific information; financial opennes;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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