Paper Details

Name: Arya Tondwalkar, Vidya Hattangadi
Country: India

Year: 2025
Volume: Special Issue: Volume-12, Issue-1, Year: 2025 (January-June)
Page Number: 130-137
DOI: https://doi.org/10.5281/zenodo.15356895

When it comes to financial investment, culture is crucial since it affects market dynamics,
investor behaviour, and cross-border capital flows. The CAGE Framework, which stands for
Cultural, Administrative, Geographic, and Economic distances, offers a methodical way to
comprehend these impacts. Investment preferences are influenced by cultural distance in
terms of risk tolerance, trust, corporate governance, and ethical considerations. Legal and
regulatory disparities as well as administrative distance have an impact on market access and
investor confidence. Digital innovations have lessened the impact of geographic distance on
market accessibility and investment viability. The economic distance between nations affects
capital allocation, taking into account factors like income levels and financial market
maturity. Investors can successfully traverse global markets and reduce the risks associated
with cross-border investments by incorporating cultural knowledge into financial strategy. Do
cultural variables have an impact on people's decisions to invest in new businesses? In that
case, do cultural considerations affect which new projects they fund? People make decisions
about their finances based on the cultural norms of their society. We speculate that a person's
culture affects whether or not they invest in new projects because different nations have
different cultural aspects. We further speculate that the culture of individuals who do invest
affects whether they fund a family business or a nonfamily business. The findings mostly
corroborate our theories and demonstrate how many cultural factors affect whether a person
invests in their own business or in the business of a family member or someone else. These
findings may help to explain the variations in new venture funding and new business startup
rates among countries, as family members are among the best sources of funding for
entrepreneurs when they are first establishing a business.
Key Words: Culture, Financial Investment, CAGE Framework, Risk Tolerance, Cross-
Border Investment, Corporate Governance, Economic Distance, Investor Behavior,
International Finance, Market Dynamics.