Individualism and momentum around the world

Research output: Journal article publicationJournal articleAcademic researchpeer-review

546 Citations (Scopus)


This paper examines how cultural differences influence the returns of momentum strategies. Cross-country cultural differences are measured with an individualism index developed by Hofstede (2001), which is related to overconfidence and self-attribution bias. We find that individualism is positively associated with trading volume and volatility, as well as to the magnitude of momentum profits. Momentum profits are also positively related to analyst forecast dispersion, transaction costs, and the familiarity of the market to foreigners, and negatively related to firm size and volatility. However, the addition of these and other variables does not dampen the relation between individualism and momentum profits.
Original languageEnglish
Pages (from-to)361-392
Number of pages32
JournalThe Journal of Finance
Issue number1
Publication statusPublished - 1 Feb 2010


  • ENGL

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics

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