New evidence on national culture and bank capital structure

© 2017 Elsevier B.V. We examine the nature of impact of national culture on bank leverage using a broad sample of 1701 banks from 79 countries, over the period 2000–2013, i.e., 18,996 bank-year observations. We find that banks in countries with high individualism culture dimensions hold more leverag...

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Main Authors: Haq, M., Hu, D., Faff, R., Pathan, Md Shams Tabrize
Format: Journal Article
Language:English
Published: ELSEVIER SCIENCE BV 2018
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/76639
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author Haq, M.
Hu, D.
Faff, R.
Pathan, Md Shams Tabrize
author_facet Haq, M.
Hu, D.
Faff, R.
Pathan, Md Shams Tabrize
author_sort Haq, M.
building Curtin Institutional Repository
collection Online Access
description © 2017 Elsevier B.V. We examine the nature of impact of national culture on bank leverage using a broad sample of 1701 banks from 79 countries, over the period 2000–2013, i.e., 18,996 bank-year observations. We find that banks in countries with high individualism culture dimensions hold more leverage while, banks in countries with high uncertainty-avoidance, power distance, and long-term orientation have less leverage. Notably, bank size substantially moderates these cultural effects. Our findings are robust to endogeneity, and alternative proxies for the dependent and core explanatory variables.
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spelling curtin-20.500.11937-766392019-10-24T07:52:42Z New evidence on national culture and bank capital structure Haq, M. Hu, D. Faff, R. Pathan, Md Shams Tabrize Social Sciences Business, Finance Business & Economics Bank leverage National culture Individualism Power distance Uncertainty avoidance Long-term orientation Endogeneity RISK DIVERSIFICATION OVERCONFIDENCE QUALITY GENDER STOCK GLOBE SELF BIAS LAW © 2017 Elsevier B.V. We examine the nature of impact of national culture on bank leverage using a broad sample of 1701 banks from 79 countries, over the period 2000–2013, i.e., 18,996 bank-year observations. We find that banks in countries with high individualism culture dimensions hold more leverage while, banks in countries with high uncertainty-avoidance, power distance, and long-term orientation have less leverage. Notably, bank size substantially moderates these cultural effects. Our findings are robust to endogeneity, and alternative proxies for the dependent and core explanatory variables. 2018 Journal Article http://hdl.handle.net/20.500.11937/76639 10.1016/j.pacfin.2017.09.005 English ELSEVIER SCIENCE BV restricted
spellingShingle Social Sciences
Business, Finance
Business & Economics
Bank leverage
National culture
Individualism
Power distance
Uncertainty avoidance
Long-term orientation
Endogeneity
RISK
DIVERSIFICATION
OVERCONFIDENCE
QUALITY
GENDER
STOCK
GLOBE
SELF
BIAS
LAW
Haq, M.
Hu, D.
Faff, R.
Pathan, Md Shams Tabrize
New evidence on national culture and bank capital structure
title New evidence on national culture and bank capital structure
title_full New evidence on national culture and bank capital structure
title_fullStr New evidence on national culture and bank capital structure
title_full_unstemmed New evidence on national culture and bank capital structure
title_short New evidence on national culture and bank capital structure
title_sort new evidence on national culture and bank capital structure
topic Social Sciences
Business, Finance
Business & Economics
Bank leverage
National culture
Individualism
Power distance
Uncertainty avoidance
Long-term orientation
Endogeneity
RISK
DIVERSIFICATION
OVERCONFIDENCE
QUALITY
GENDER
STOCK
GLOBE
SELF
BIAS
LAW
url http://hdl.handle.net/20.500.11937/76639