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Ancestry barriers to the cross-border diffusion of global market information

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  • Todea, Anita

Abstract

Building ‘genetic distance from wealth’ we show that cross-border diffusion of global market information is strongly associated with ancestry barriers. The study was conducted on an unbalanced panel of 1768 stocks, from 43 countries, for the period 2004–2018. The results show that the stocks listed on stock markets whose populations are genetically far from ‘wealth’ incorporate with delay the global information. The portfolio foreign investments can mitigate this relationship only if they come from more financially educated investors than domestic ones.

Suggested Citation

  • Todea, Anita, 2022. "Ancestry barriers to the cross-border diffusion of global market information," Finance Research Letters, Elsevier, vol. 49(C).
    • Handle: RePEc:eee:finlet:v:49:y:2022:i:c:s1544612322003749
    DOI: 10.1016/j.frl.2022.103151
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    More about this item

    Keywords

    Price delay; Global market-wide information; Genetic distance; Portfolio foreign investments;
    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
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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