commonality in liquidity for 51 countries over the period 1985 to 2012. We provide evidence
that commonality in liquidity is higher for stocks that trade in collectivist countries, after
controlling for supply-side and demand-side determinants of liquidity as well as a host of
country-and firm-level variables. The documented relation is shown to be moderated by
country-level variables such as media penetration, trust, and rule of law. The impact of …