National Culture of Secrecy and Stock Price Synchronicity: Cross-Country Evidence

39 Pages Posted: 3 Feb 2021

See all articles by Chrysovalantis Gaganis

Chrysovalantis Gaganis

University of Crete - Faculty of Social Sciences - Department of Economics

George N. Leledakis

Athens University of Economics and Business - Department of Accounting and Finance

Fotios Pasiouras

GSCM-Montpellier Business School

Emmanouil G. Pyrgiotakis

University of Essex - Essex Business School

Date Written: January 19, 2021

Abstract

Stock price synchronicity has been associated with various market outcomes like the return-sentiment relations, stock liquidity, and asset pricing models. Therefore, researchers have devoted a lot of time in revealing the underlying factors that drive stock price synchronicity. Using a sample of 49 countries over the period 1990 to 2019 we find a robust association between higher cultural secretiveness and stock price synchronicity. Our results suggest that a deep-rooted country characteristic like the culture of secrecy can diminish the information environment of stock markets. The results are robust to the use of various control variables suggested in earlier studies and alternative regression techniques, including ones that address endogeneity concerns.

Keywords: Culture, Information and market efficiency, Stock price synchronicity

JEL Classification: G14, G41, E71

Suggested Citation

Gaganis, Chrysovalantis and Leledakis, George N. and Pasiouras, Fotios and Pyrgiotakis, Emmanouil G., National Culture of Secrecy and Stock Price Synchronicity: Cross-Country Evidence (January 19, 2021). Available at SSRN: https://ssrn.com/abstract=3769565 or http://dx.doi.org/10.2139/ssrn.3769565

Chrysovalantis Gaganis

University of Crete - Faculty of Social Sciences - Department of Economics ( email )

University Campus
Rethymno, Crete, 74100
Greece

HOME PAGE: http://economics.soc.uoc.gr/en/staff/4551/17

George N. Leledakis (Contact Author)

Athens University of Economics and Business - Department of Accounting and Finance ( email )

76 Patission Street
GR-104 34 Athens
Greece
+30 210 8203 459 (Phone)
+30 210 8228 816 (Fax)

HOME PAGE: http://www.aueb.gr/en/faculty_page/leledakis-georgios

Fotios Pasiouras

GSCM-Montpellier Business School ( email )

2300, Avenue des Moulins
Montpellier, 34185
France

Emmanouil G. Pyrgiotakis

University of Essex - Essex Business School ( email )

Wivenhoe Park
Colchester, CO4 3SQ
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
27
Abstract Views
173
PlumX Metrics