scholarly journals The Stock Market and Cross Country Differences in Relative Prices

2005 ◽  
Author(s):  
Borja Larrain
Keyword(s):  
Stock Market ◽  
Relative Prices ◽  
Country Differences ◽  
Cross Country

scholarly journals Carry-Trade Returns and Segmented Risk Pricing

2021 ◽  
Author(s):  
Gordon Schulze
Keyword(s):  
Interest Rate ◽  
Stock Market ◽  
Risk Aversion ◽  
Stock Returns ◽  
The United States ◽  
Carry Trade ◽  
Risk Pricing ◽  
Country Differences ◽  
Cross Country ◽  
The Interest Rate

AbstractThe returns to carry-trades are controversially discussed. There seems to be no unifying risk-based explanation of currency returns and stock returns, while the countries’ interest rate differential plays a leading part in the carry-trade performance. Therefore, this paper addresses carry-trade returns from a risk-pricing perspective and examines if these returns can be connected to cross-country differences in risk pricing in the interest-rate market compared to the stock market. Data from Thomson Reuters Datastream and Federal Reserve Economic Data covering Australia, Japan, New Zealand, Switzerland and the United States were analyzed based on GMM estimation. The results indicate significant and persistent cross-country differences in risk aversion in the interest-rate market compared to the implied risk aversion in the stock market. This may offer opportunities for risk arbitrage and, therefore, a risk pricing-related explanation of carry-trade returns.

scholarly journals Cross-Country Differences in Household Stock Market Participation: The Role of Gender Norms

2018 ◽  
Vol 108 ◽  
pp. 159-162 ◽  
Author(s):  
Da Ke
Keyword(s):  
Stock Market ◽  
Gender Norms ◽  
Gender Role Attitudes ◽  
Market Participation ◽  
Balance Sheets ◽  
Stock Market Participation ◽  
Country Analysis ◽  
Country Differences ◽  
Cross Country

What explains substantial variation across countries in household stock market participation? Building on Ke (2018), I hypothesize that the prevailing gender norm in a country is an important cultural factor. In a cross-country analysis, I find that households in countries with strong gender norms are less likely to participate in the stock market. In addition, I present suggestive evidence that gender role attitudes help explain cross-country differences in participation among the wealthy. My findings underscore the role of social norms in shaping household balance sheets across countries.

How Does Firm Size Explain Cross-Country Differences in Ownership Concentration?

2020 ◽  
Author(s):  
Fariborz Moshirian ◽  
Nguyen Thi Thuy ◽  
Jin Yu ◽  
Bohui Zhang
Keyword(s):  
Firm Size ◽  
Ownership Concentration ◽  
Country Differences ◽  
Cross Country

Connections Between Cultures: Using Empirical Distributions for Measuring Cultural Differences

2020 ◽  
pp. 002202212098237
Author(s):  
Wolfgang Messner
Keyword(s):  
Cultural Values ◽  
Cultural Differences ◽  
Distance Measures ◽  
Cultural Variation ◽  
Group Level ◽  
Psychological Phenomena ◽  
Empirical Distributions ◽  
Leibler Divergence ◽  
Country Differences ◽  
Cross Country

The past few decades have seen an explosion in the interest in cultural differences and their impact on many aspects of business management. A noticeable feature of most academic studies and practitioner approaches is the predominant use of national boundaries and group-level averages as delimiters and proxies for culture. However, this largely ignores the significance that intra-country differences and cross-country similarities can have for identifying psychological phenomena. This article argues for the importance of considering intra-cultural variation for establishing connections between two different cultures. It uses empirical distributions of cultural values that occur naturally within a country, thereby making intracultural differences interpretable and actionable. For measuring cross-country differences, the Gini/Weitzman overlapping index and the Kullback-Leibler divergence coefficient are used as difference measures between two distributions. The properties of these measures in comparison to traditional group-level mean-based distance measures are analyzed, and implications for cross-cultural and international business research are discussed.

scholarly journals EXPLORING CROSS-COUNTRY VARIATION IN GOVERNMENT SHARES: WHAT CAN WE LEARN FROM RELATIVE PRODUCTIVITIES?

2012 ◽  
Vol 17 (2) ◽  
pp. 356-372 ◽  
Author(s):  
Maksym Obrizan
Keyword(s):  
Relative Price ◽  
Total Output ◽  
Government Consumption ◽  
Strong Negative Correlation ◽  
Empirical Observation ◽  
Relative Prices ◽  
Neoclassical Growth Model ◽  
Poor Countries ◽  
Cross Country ◽  
Neoclassical Growth

Government shares in total output are characterized by significant variation across countries. I noticed a strong negative correlation between government consumption shares and the price of government services in terms of private consumption. Motivated by this empirical observation, I developed a neoclassical growth model with added government that is capable of matching the variation in government shares very closely using only relative prices. In addition, I provide empirical evidence showing that the relative price of government consumption increases with income, which is consistent with distortions prevailing in poor countries. These two observations combined imply that government shares tend to be higher in poorer countries.

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