Cultural Finance

This book provides a comprehensive overview of the emerging field of cultural finance. It summarizes research results of cultural differences in financial decision making and financial markets. Many of the results have been published in leading academic journals over the last ten years but some are presented here for the first time. The book is based on an international survey on risk and time preferences — the INTRA study, conducted in 53 countries worldwide. Applications to financial markets include the equity premium puzzle, the value premium, dividend payout policies and asset allocations.Contents: Introduction — Experiences from a Global SurveyTime:How Time Preferences Differ: Evidence from 53 CountriesWhat Do We Measure When We Measure Time Discounting? The Impact of Wealth, Growth Rate and Financial Market AccessibilityHow Politics Affects Time Preferences: The Case of Eastern EuropeTime Preferences and MigrationRisk:Risk Preferences Around the WorldThe Impact of Culture on Loss AversionEstimating Cumulative Prospect Theory Parameters from an International SurveyToo Risk-Averse for Prospect Theory?Risk Preferences in Eastern and Western EuropeHow Gender Effects Differ Between CountriesFinancial Markets:International Evidence on the Equity Premium Puzzle and Time DiscountingCan Ambiguity Aversion Solve the Equity Premium Puzzle? Survey Evidence from International DataThe Fundamental Equity Premium and Ambiguity Aversion in an International ContextTime Discounting and the Value PremiumImpacts of Ambiguity Aversion and Information Uncertainty on Momentum: An International StudyThe Behavioral Foundations of Corporate Dividend Policy a Cross-Country AnalysisCorporate Cash Holdings and Ambiguity AversionHome Bias and Ambiguity AversionOn the Determinants of Household Debt Maturity ChoiceEpilogue: Applications and Alternative Measures
Readership: For researchers and students who are interested in behavioural economics, behavioural finance, culture and business, and decision theory. Finance;Culture;International;Time Preferences;Risk Preferences;Decision Theory0Key Features:So far the knowledge in the emerging field of cultural finance was scattered around in research papers — most of them difficult to access for practitioners. Our book provides a comprehensive overview of the field encouraging researches to make further advancements. Moreover, it is a valuable source for practitioners. For example, global financial institutions need to know the cultural differences of their clients and policy makers all around the world can benefit from our knowledge to make more effective interventionsFirst concise treatment of cultural economics and financeBased not only on cultural differences (like, e.g., the books by Geert Hofstede), but also on the first comprehensive measurements of time and risk preferencesContains highly quoted research that inspired researchers in various fields as well as entirely new results, not published elsewhere