Management Department

Description or Abstract

This report in the field of behavioral finance explores the effect of national culture factors and firm specific factors on the stock prices of publicly traded firms in the 36 countries in the emerging markets. Using linear regression, we tested 13 variables (three of them were Hofstede’s indices for Individualism, Uncertainty Avoidance, and Long-term Orientation) against the stock prices. We found that in the Africa, America, and Europe regions, the cultural factors had no significant effect on stock prices. On the other hand we found that only individualistic behavior had a significant effect on stock prices in businesses in Arab and Asia. Moreover, we found that a firm’s value and investment activities had a significant impact on stock prices in Africa and Asia regions, while a firm’s size had that impact in Latin America and Arab regions.


Stock prices, Behavioral Finance, Hofstede, National Cultures, Emerging Markets

Faculty Advisor

Nashwa Saleh


FINC 5203

Content Type



5 p.