Do national culture and board attributes influence corporate investment decisions?

Abstract

Purpose The purpose of this paper is to study the relationship between board attributes and national culture on firms’ investment decisions. Design/methodology/approach The study used data from listed firms from seven Sub-Saharan Africa countries. Descriptive analysis was performed to provide the background statistics of the variables examined. This was followed by regression analysis, which constitutes the main data analysis. Findings The multiple regression analysis results indicate a negative relationship between uncertainty avoidance (UAI) and corporate investment decisions. The study also found that there is a negative relationship between the interaction between UAI and the number of independent board members and corporate investment decisions. Originality/value This study is one of the few to measure the influence of governance variables and national culture on corporate investment decisions in Sub-Sahara Africa.