The impact of world government indicators on market investment behavior

Although the behavioral finance sector has recently developed considerably, investors haveirrational issues while taking the investment decisions on the capital market. We aim toempirically analyze the way in which aspects such as asymmetric information, emotionalstate, public policy and organizational culture affect their behavior. In the present paper weused quantitative data, building a database of 30 countries divided into two categories:socio-mature economies and respectively emerging and border economies.Using globalgovernance indicators and calculating the Hurst exponent, the symmetry coefficient, theKurtosis coefficient and the fractal dimension, we applied the Bayesian estimate method inorder to establish the link between the dimensions of the global governance indicators andthe dependent variables.The results of the linear regression have been disseminated, while the long-term and shorttermeffects were observed taking into account issues related to the quality of regulations,public policy, governance effectiveness, the rule of law, corruption control, stability policyand lack of violence/terrorism and participation and accountability.The purpose of the paper is to study the impact of macroeconomic factors such as worldgovernment indicators, by analysing their impact over the efficiency of financial markets.