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2021 | OriginalPaper | Chapter

The Relationship Between Ethnic Diversity and Stock Market Development: A Global Perspective

Author : Saqib Amin

Published in: Contemporary Trends and Challenges in Finance

Publisher: Springer International Publishing

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Abstract

Diversity plays a crucial role in investor’s decision-making behaviour. If the culture of heterogeneity escalates, consumer choices also create catastrophic shifts in the financial markets. This study aims to investigate the relationship between diversity and stock market development by using the data of 187-countries of the world. The results indicate that diversity either ethnic or religious, or both have a significant positive association with stock market development (including market capitalization, market liquidity, turnover ratio, listed domestic companies, S&P/global equity index). This study suggests that diversity is a natural phenomenon; however, productive results of diversity can be obtained by providing an equal and peaceful society through cohesiveness.

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Title: The Relationship Between Ethnic Diversity and Stock Market Development: A Global Perspective
Author: Saqib Amin
Publisher: Springer International Publishing
Book: Contemporary Trends and Challenges in Finance
Print ISBN: 978-3-030-73666-8

Electronic ISBN: 978-3-030-73667-5

Copyright Year: 2021
DOI: https://doi.org/10.1007/978-3-030-73667-5_1