Cultural Diversity and Stock Market Prosperity

Abstract

Cultural diversity is a “Double-edged sword” for stock market development. The current research investigated the relationship between cultural diversity and stock market prosperity. It was found that that cultural diversity could promote stock market prosperity and the effect varies from country to country. In particular, it was found that cultural diversity has positive impact on stock market prosperity in high development-level and legal system quality countries, and vice versa. These findings may helpful for developing multi-national countries.

Keywords: Cultural diversity, Stock market prosperity, Development-level, Legal system quality, Culture

JEL Classification: G0