National culture and corporate risk-taking around the world

Bart Frijns, Frank Hubers, Donghoon Kim, Tai-Yong Roh and Yahua Xu

Global Finance Journal, 2022, vol. 52, issue C

Abstract: This paper examines the effect of national culture on corporate risk-taking worldwide. Specifically, we focus on one particular cultural trait – Individualism – a culture dimension linked to risk-taking and overconfidence. Using a sample of 48 countries from 1998 to 2019 (a total of 111,697 firm-year observations), we document a positive relationship between Individualism and corporate risk-taking. This result is robust to potential endogeneity concerns, alternative default horizons, an alternative measure for corporate risk-taking, and alternative measures of Individualism.

Keywords: National culture; Corporate risk-taking; Individualism (search for similar items in EconPapers)
JEL-codes: G30 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:52:y:2022:i:c:s1044028322000126

DOI: 10.1016/j.gfj.2022.100710

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