Stock Market Development and Cultural Values in the United Kingdom
Business and Economics Society International conference, Florence, Italy July 15-19, 2006
Posted: 3 Apr 2007 Last revised: 20 May 2025
Date Written: January 01, 2012
Abstract
This study explores the dynamic relationship between stock market development and cultural values in the United Kingdom. Thirty two proxy variables are used to represent cultural values and stock market development indicators on a continuous scale for the period 1990-2004. The multi-dimensional structural equation model shows that there is a significant negative relationship between power distance and stock market size. In addition, a significant positive relationship is detected between individuality and stock market activity at the 0.90 confidence level. These results shed some light on the importance of cultural values which can help improve stock market development programs within countries.
Keywords: A13, G10
JEL Classification: stock market, cultural values, United Kingdom
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