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Equity Culture

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  • Boyd Black

Abstract

The literature in law and finance has developed a consensus that legal family tradition is the main determinant of cross-national variations in corporate governance and equity markets. This paper argues that national culture is an additional determinant. This hypothesis is developed empirically. The importance of national culture cannot be rejected, even when controlling for legal family origin, investor rights, and a range of other variables. There is an equity culture based on uncertainty (ambiguity) aversion.

Suggested Citation

  • Boyd Black, 2009. "Equity Culture," Economics Working Papers 09-03, Queen's Management School, Queen's University Belfast.
    • Handle: RePEc:qub:wpaper:0903
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    National culture; Equity; Ambiguity; Uncertainty; Corporate governance;
    All these keywords.

    JEL classification:

    • K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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