PROBING BEHAVIORALFINANCEFROM CROSSCULTURAL PERSPECTIVE

Abstract

Due to evolution of technology andits growing trends, the financial market has also started to reach the corners with ease. As a result of these developments, people are prone to the market performance and their behavioral pattern is varying between the actual and the rational (expected). This happens due to the effect of various factors and one among them is cultural factors. Having this as a key, this paper attempts to investigate how financial decision is influenced by various cultural dimensions. The different cultural indices among various countries and its impacts on the investment decisionsare analyzed.This paper posits that there may be a correlation between cultural dimensions and behavior of the investor.Reviews have given some scope to understandthe influence of Power Distance, Individualism and Uncertainty Avoidance Indices over Risk Diversification, Less Herding Behavior and High Safety Margins respectively.