%0 Journal Article
%A Kyriaki, Kafka I. Kyriaki
%A Dionysis, Valsamis G. Dionysis
%A Petrakis, Panagiotis E. Petrakis
%D 2020
%J Journal of Business Accounting and Finance Perspectives

%@ 2603-7475

%V 2
%N 1
%P 4

%T Investment Diversification and Optimal Cultural Background
%M doi:10.35995/jbafp2010004
%U https://jbafp.archive.jams.pub/article/2/1/27
%X Investment diversification is a prerequisite for dynamic growth performance. It is intuitively accepted that cultural background affects investment behavior and investment decision making, but does cultural change affect investment diversification? This paper assesses whether cultural background shapes growth performance through investment diversification. Empirical analysis was conducted using decade-level data for a sample of 33 OECD countries over the 30-year period from 1981 to 2010. Using fixed effects estimation, different intercepts across countries, and decade time dummies, the analysis shows that societies that are closer to the optimal cultural background achieve better investment diversification behavior. The article thus contributes to the long-standing debate on the cultural roots of growth.