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CUTURAL VALUES IMPACT ON RISK PERCEPTIONS:A COMPARISON OF CULTURAL INDEXES AND RISK PREMIUM
| Title: | CUTURAL VALUES IMPACT ON RISK PERCEPTIONS:A COMPARISON OF CULTURAL INDEXES AND RISK PREMIUM. |
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| Name(s): |
Constantino, Anna, Author Sweo, Robert, Committee Chair University of Central Florida, Degree Grantor |
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| Type of Resource: | text | |
| Date Issued: | 2012 | |
| Publisher: | University of Central Florida | |
| Language(s): | English | |
| Abstract/Description: | This paper examines how cultural values influence risk premium across the world. Cultural values are measured by four cultural indexes, power distance, uncertainty avoidance index, masculinity index, and individualism index, established by Geert Hofstede. Our methodology determines the risk premium by using the Dividend Discount Model, and then computes the regression analysis of each index's impact on average risk premiums. After analyzing 31 countries, results show the only statistically significant correlation found was between the individualism index and risk premium. The higher the individualistic nature of the culture was the higher the risk premium. This is attributed to the overconfidence and self-attribution biases found in investors with high individualism index. | |
| Identifier: | CFH0004198 (IID), ucf:44830 (fedora) | |
| Note(s): |
2012-05-01 B.A. Business Administration, Dept. of Finance Bachelors This record was generated from author submitted information. |
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| Subject(s): |
Geert Hofstede risk premium |
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| Persistent Link to This Record: | http://purl.flvc.org/ucf/fd/CFH0004198 | |
| Restrictions on Access: | public | |
| Host Institution: | UCF |
