 Alcohol culture and corporate risk-takingLan Guo, Zhong-qin Su, Zuoping Xiao and Hung-Gay Fung Research in International Business and Finance, 2024, vol. 67, issue PB Abstract: Using data on Chinese firms from 2004 to 2019, this study reveals a positive association between alcohol culture and corporate risk-taking. The positive relationship is robust across different measures of risk-taking, estimation methods, and after considering potential sample selection and endogeneity issues. Two mechanisms emerge behind this positive relationship: social networks and trustful social environments; these mediating variables explain corporate risk-taking well. In addition, stronger formal institutions (market development, government efficiency, and the legal environment) and religion weaken the positive effects of alcohol culture on risk-taking. Meanwhile, these positive effects are positively moderated by collectivism and language diversity. Finally, influenced by alcohol culture, CEOs play an essential role in risk-taking. Keywords: Alcohol culture; Risk-taking; Social network; Trust environment (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:67:y:2024:i:pb:s0275531923002532 DOI: 10.1016/j.ribaf.2023.102127 Access Statistics for this article Research in International Business and Finance is currently edited by T. Lagoarde Segot More articles in Research in International Business and Finance from Elsevier |
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