Does national culture affect corporate capital structure?
I examine the impact of national culture on corporate capital structure decisions. Based on prior research, corporate debt ratio is expected to be influenced by national culture after controlling for firm-level and country-level effects. I use Hofstede’s six cultural dimensions (Power Distance, Indi...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2016
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| Online Access: | https://eprints.nottingham.ac.uk/36918/ |
| _version_ | 1848795359501877248 |
|---|---|
| author | Bai, Wei |
| author_facet | Bai, Wei |
| author_sort | Bai, Wei |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | I examine the impact of national culture on corporate capital structure decisions. Based on prior research, corporate debt ratio is expected to be influenced by national culture after controlling for firm-level and country-level effects. I use Hofstede’s six cultural dimensions (Power Distance, Individualism, Masculinity, Uncertainty Avoidance, Long-term Orientation, and Indulgence) to capture national culture, and my sample comprises 25,216 firm-year observations across 37 countries over the period 2006–2015. In my study, it is robust that firms in countries with high Power Distance, Individualism, and Long-term Orientation tend to have more debt. However, the influence of Masculinity, Uncertainty Avoidance and Indulgence on capital structure decisions is ambiguous. My findings support the results of prior literature and also add new evidence to the culture and finance literature. |
| first_indexed | 2025-11-14T19:30:50Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-36918 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T19:30:50Z |
| publishDate | 2016 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-369182017-10-12T21:28:04Z https://eprints.nottingham.ac.uk/36918/ Does national culture affect corporate capital structure? Bai, Wei I examine the impact of national culture on corporate capital structure decisions. Based on prior research, corporate debt ratio is expected to be influenced by national culture after controlling for firm-level and country-level effects. I use Hofstede’s six cultural dimensions (Power Distance, Individualism, Masculinity, Uncertainty Avoidance, Long-term Orientation, and Indulgence) to capture national culture, and my sample comprises 25,216 firm-year observations across 37 countries over the period 2006–2015. In my study, it is robust that firms in countries with high Power Distance, Individualism, and Long-term Orientation tend to have more debt. However, the influence of Masculinity, Uncertainty Avoidance and Indulgence on capital structure decisions is ambiguous. My findings support the results of prior literature and also add new evidence to the culture and finance literature. 2016 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/36918/1/final%20Dissertation%28Wei%20BAI%29.pdf Bai, Wei (2016) Does national culture affect corporate capital structure? [Dissertation (University of Nottingham only)] |
| spellingShingle | Bai, Wei Does national culture affect corporate capital structure? |
| title | Does national culture affect corporate capital structure? |
| title_full | Does national culture affect corporate capital structure? |
| title_fullStr | Does national culture affect corporate capital structure? |
| title_full_unstemmed | Does national culture affect corporate capital structure? |
| title_short | Does national culture affect corporate capital structure? |
| title_sort | does national culture affect corporate capital structure? |
| url | https://eprints.nottingham.ac.uk/36918/ |