Cultural distance, innovation capability, and corporate performance

Yuanlun Wang, Lingjuan Suo, Chunlei Li and Lele Wang

Finance Research Letters, 2025, vol. 77, issue C

Abstract: Using panel data from Chinese listed firms from 2008 to 2022, this study examines the relationship between cultural distance and corporate performance development. The findings suggest that a closer cultural distance enhances corporate performance. Reduced cultural distance can enhance a company's innovation capability and thus improve corporate performance. Corporate innovation roles differ between high-tech and nonhigh-tech enterprises, while cultural distance affects corporate performance with a threshold effect related to company size.

Keywords: Cultural distance; Innovation capability; Corporate performance; Company size (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612325003241
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:77:y:2025:i:c:s1544612325003241

DOI: 10.1016/j.frl.2025.107060

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().