Template-type: ReDif-Paper 1.0
Author-Name: Kleimeier, S.
Author-workplace-name: Finance
Author-Name: Sander, H.
Author-workplace-name: Externe publicaties SBE
Author-Name: Heuchemer, S.
Title: The resurgence of cultural borders in international finance during the financial crisis: Evidence from Eurozone cross-border depositing
Abstract: In this paper, we demonstrate that cultural borders in international finance resurge during financial crises. To investigate the role of cultural borders during both tranquil and crisis periods, we employ a unique data set that focuses on Eurozone cross-border depositing in a gravity-model framework. We provide evidence that cultural distance limits international financial integration. However, cultural borders lost influence during a "Europhoria" phase after the introduction of the Euro notes in 2002, indicating that confidence in the new currency helps to overcome cultural borders. In contrast, cultural borders have severely limiting effects during crisis periods.
Series: GSBE Research Memoranda
Creation-Date: 20140101
Number: 013
File-URL: https://cris.maastrichtuniversity.nl/ws/files/1222284/guid-83e47199-adc1-45df-8f85-4b3202112fc8-ASSET1.0.pdf
File-Format: application/pdf
File-Size: 755372
Handle: Repec:unm:umagsb:2014013
DOI: 10.26481/umagsb.2014013