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The Impact of Social Norms on Stock Liquidity Cover

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The Impact of Social Norms on Stock Liquidity

Studia Universitatis Babes-Bolyai Oeconomica

Volume 68 (2023): Issue 1 (April 2023)

By: Andrei Dimcea

Open Access

|May 2023

Abstract

There is a growing body of research that shows the impact of culture on individual’s financial decisions. We aim to investigate how the strength of social norms and the tolerance for deviant behavior influence stock liquidity. Using a panel of 26 developed and 19 emerging countries we show that there is an inverted U-shaped relationship between the measure of cultural tightness-looseness, developed by Gelfand et al. (2011) and stock liquidity. Additionally, our results suggest that financial literacy has a moderating effect on the relationship between social norms and liquidity.

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Articles in this issue

DOI: https://doi.org/10.2478/subboec-2023-0005 | Journal eISSN: 2065-9644

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Language: English

Page range: 78 - 99

Published on: May 8, 2023

Published by: Babeș-Bolyai University

In partnership with: Paradigm Publishing Services

Publication frequency: 3 issues per year

Keywords:

information asymmetry,

financial literacy

Related subjects:

Business and economics,

Political economics,

Public finance and fiscal theory,

Business management,

Management accounting, financial controlling, cost calculation, investment,

Marketing, sales, customer relations,

Business management, other

© 2023 Andrei Dimcea, published by Babeș-Bolyai University
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Volume 68 (2023): Issue 1 (April 2023)

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