“…Our motivation to focus on the investors’ perspective stems from the rich literature in behavioral finance documenting the relevance of investor characteristics and biases to asset pricing. For example, prior literature documents that investor traits influence investment choice, trading volume, volatility, returns, and level of cash holdings (e.g., Grinblatt and Keloharju, ; Barberis and Shleifer, ; Gaspar et al., ; Kumar, ; Chui et al., ; Neamtiu et al., ; Hirshleifer, 2015; and Dou et al., ). Differences in national cultural characteristics present an opportunity to examine the effect of investors’ cultural traits on firm (and cash) valuation.…”