Note(s): This table reports the country-average asset growth premia in local currencies across different levels of national cultures. For each country, we first rank individual stocks in ascending order based on their asset growth (TAG) calculated at the end of the previous fiscal year. We classify firms into deciles, with TAG values ranked in the bottom 10% assigned to the AG1 portfolio and those ranked in the top 10% assigned to the AG10 portfolio. The portfolios are held with equal or value weights from July of each year to June of the next year and are rebalanced at the end of June every year. The country-specific asset growth premium is defined as the difference in returns in local currencies between AG1 and AG10 portfolios calculated within the country. We next classify countries into three groups based on their scores of IDV or UAI and calculate the country-average asset growth premia within each individualism subgroup. Panel A reports the results based on individualism while Panel B reports the results based on uncertainty avoidance. Numbers in the parentheses are the t-statistics calculated using Newey and West's (1987) robust standard errors. ***, ** and * denote significance at the 1%, 5% and 10% levels, respectively

Source(s): Author's work