Trust And Investments Across Cultures

Abstract

This study uses survey data to examine notions of trust relative to investments and perceived risk.  Rather than using nation cross-sectional household survey data we target a specific group across four distinct cultures.  We survey graduate business students in four countries (Turkey, Bahrain, Czech Republic, and the USA).  We attempt to gauge investor perceptions about trust and the potential impact of trust on equity investing.  The groups are fairly homogeneous in terms of education and relative social and economic status leaving cultural differences as the main source of observed response differences.