Does national culture affect international corporate cash holdings?
Kiyoung Chang and
Journal of Multinational Financial Management, 2009, vol. 19, issue 5, 323-342
The current literature frequently examines the effects of shareholder rights protection on corporate cash holdings in the context of agency theory. In this study, we show that national culture influences corporate managers' cash holding behavior beyond the effects of corporate governance and financial market developments in each country through the perception of agency costs and value of financial flexibility. Using Hofstede's cultural dimension indices, we find that corporations hold larger cash and liquid balances in countries where the people tend to avoid uncertainty more, are culturally more masculine, and have longer term orientation.
Keywords: Cash; holdings; Culture; Corporate; governance (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (12) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:mulfin:v:19:y:2009:i:5:p:323-342
Access Statistics for this article
Journal of Multinational Financial Management is currently edited by I. Mathur and G. G. Booth
More articles in Journal of Multinational Financial Management from Elsevier
Series data maintained by Dana Niculescu ().