National culture and banks stock volatility

Koresh Galil, Eva Varon

Research output: Contribution to journalArticlepeer-review


We conduct a cross-country analysis to examine the impact of national culture on the vulnerability of European banks during the Covid-19 pandemic. Analyzing the stock market volatility of major banks, we explore differences in uncertainty avoidance and individualism levels across multiple European countries. Our results reveal that low uncertainty avoidance reduces the influence of Covid-19-related cases on bank volatility during the peak of the crisis. Even as the pandemic progresses and vaccinations become widespread, the effect of uncertainty avoidance remains significant. We also find that high individualism has a stabilizing effect on bank volatility, particularly after the start of vaccinations. This study contributes to understanding the role of national culture in shaping bank vulnerability to common stocks, such as the pandemic.

Original languageAmerican English
Article number101932
JournalJournal of International Financial Markets, Institutions and Money
StatePublished - 1 Mar 2024


  • Banks
  • Covid-19
  • Individualism
  • National culture
  • Stocks volatility
  • Uncertainty avoidance

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics
  • Finance


Dive into the research topics of 'National culture and banks stock volatility'. Together they form a unique fingerprint.

Cite this