Risk, culture and investor behavior in small (but notorious) Eurozone countries

Seungho Lee, Lorne Switzer*, Jun Wang

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

13 Citations (Scopus)


This research investigates how culture moderates the impact of risk on individual investors’ trading behavior in nine Eurozone countries, where risk is measured by conventional and extreme risk. These markets were particularly affected by the global financial crisis, the subsequent European banking crisis, and the European sovereign debt crisis. Using mutual fund flows as proxy of investors’ trading behavior, our evidence indicates that country culture variable significantly affects investor’ trading responsiveness to risk. Specifically, the impact of risk on fund flows is significantly positive and is larger in scale in countries with individualist cultures.
Original languageEnglish
Pages (from-to)89-110
Number of pages22
JournalJournal of International Financial Markets, Institutions and Money
Early online date28 Dec 2018
Publication statusPublished - May 2019


  • volatility
  • extreme risk
  • small investor behavior
  • country culture
  • Small investor behavior
  • Volatility
  • Extreme risk
  • Country culture


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