National Culture and Corporate Risk-Taking Around the World
Date
Authors
Frijns, B
Hubers, F
Kim, D
Roh, TY
Xu, Y
Supervisor
Item type
Journal Article
Degree name
Journal Title
Journal ISSN
Volume Title
Publisher
Elsevier BV
Abstract
This paper examines the effect of national culture on corporate risk-taking worldwide. Specifically, we focus on one particular cultural trait – Individualism – a culture dimension linked to risk-taking and overconfidence. Using a sample of 48 countries from 1998 to 2019 (a total of 111,697 firm-year observations), we document a positive relationship between Individualism and corporate risk-taking. This result is robust to potential endogeneity concerns, alternative default horizons, an alternative measure for corporate risk-taking, and alternative measures of Individualism.Description
Keywords
3502 Banking, Finance and Investment, 35 Commerce, Management, Tourism and Services, 3507 Strategy, Management and Organisational Behaviour, 1502 Banking, Finance and Investment, Finance, 3501 Accounting, auditing and accountability, 3502 Banking, finance and investment
Source
Global Finance Journal, ISSN: 1044-0283 (Print), Elsevier BV, 52, 100710-100710. doi: 10.1016/j.gfj.2022.100710
Publisher's version
Rights statement
© 2022 The Authors. Published by Elsevier Inc. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).