How Does National Culture Affect Corporate Investment Efficiency?-Reference-Cited by-同舟云学术

How Does National Culture Affect Corporate Investment Efficiency?

Published:2022-04-04 Issue: Volume: Page:097215092210888
ISSN:0972-1509
Container-title:Global Business Review
language:en
Short-container-title:Global Business Review

Author:

Tran Quoc Trung¹^ORCID,Tran Quoc Dat¹

Affiliation:

1. Foreign Trade University, Ho Chi Minh City Campus, Ho Chi Minh City, Vietnam

Abstract

Corporate investment efficiency may be determined by changes in overinvestment and/or underinvestment. Prior studies showed that national culture dimensions affect firm investment efficiency. However, they failed to address whether overinvestment or underinvestment is the effective mechanism to transmit these effects. With a research data of 280,092 year-firms from 44 countries, we find that national culture affects corporate investment efficiency through underinvestment. Individualism and masculinity are positively related to investment efficiency while uncertainty avoidance and power distance are negatively related to investment efficiency.

Publisher

SAGE Publications

Subject

Business and International Management

Link

http://journals.sagepub.com/doi/pdf/10.1177/09721509221088898

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