Study Of The Impact Of Culture On The Cross Of Financial Decision-making

There are significant differences in the development of finanicial market among provinces in China, besides the policy environment, macro-economic background; we wonder whether the different cultural values will have an impact on financial development? If so, what kind of impact it will have and how to measure it?The development of behavioral economics reminds us that it is not entirely rational in decision-making, but by the impact of various psychological deviations; Cultural Psychology tells us that in fact it will be a big psychological impact of cultural bias arising from systematic, then we may say that the culture will influence people's decision-making in that region.Hofstede, Dutch scholars, developed the model of culture, then we can quantify the culture that usually thought only can be perceived through the scale, and this also provides the basis for the introduction of economic models. In this background, Cultural Finance develops.Our research began with the hypotheses that culture would have an impact on people's decision-marking, by designing a questionnaire with target, we collected a lot of date about people's risk preference, time preference in different regions, and we also got the data about their cultural values, through empirical analysis, we confirmed that culture, especially individualism/collectivism, will have a significant impact on decision-making, and we further studied the relationship between culture, decision-marking and regional financial development.We finds that a strong collective region will protect their people with "safety net", or "cushion", marking the people generally more appetite for risk and more patient for future earnings. The performance in financial market may be low insurance penetration in this region, but the degree of local financial innovation and the level of activity of private capital will be higher when we use the small loans to represent.