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How does culture influence corporate risk-taking?

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TLDR
This paper investigated the role of national culture in corporate risk-taking and found that individualism has a positive and significant association, whereas uncertainty avoidance and harmony have negative and significant associations, with corporate risk taking.
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This article is published in Journal of Corporate Finance.The article was published on 2013-12-01 and is currently open access. It has received 413 citations till now. The article focuses on the topics: Discretion & Earnings.

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National culture and corporate cash holdings around the world

TL;DR: This paper examined whether cultural dimensions explain the variation in corporate cash holdings around the world as well as within the United States and found that individualism is positively related to the firm's capital expenditures, acquisitions, and repurchases while uncertainty avoidance is negatively related.
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Are U.S. CEOs Paid More? New International Evidence

TL;DR: In this paper, the authors show that the U.S. pay premium is economically modest and primarily reflects the performance-based pay demanded by institutional shareholders and independent boards, and that there is no significant difference in either level of CEO pay or the use of equitybased pay between U. S. and non-U.S firms.
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Accrual-based and Real Earnings Management and Political Connections

TL;DR: In this paper, the trade-off between real and accrual-based management strategies differs between firms with and without political connections, and the authors argue that politically connected firms are more likely to substitute real earnings management for accruality-based earnings management than non-connected firms.
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Effects of national culture on bank risk-taking behavior

TL;DR: This article found that bank risk-taking is significantly higher in countries with high individualism, low uncertainty avoidance, and low power distance cultural values, compared to countries with low individualism and high power distance.
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The impact of cultural diversity in corporate boards on firm performance

TL;DR: In this paper, the authors examined the impact of cultural diversity in boards of directors on firm performance and found that the negative effects of cultural differences are concentrated among the independent directors and that it is mainly the diversity in individualism and masculinity that affects the effectiveness of board of directors.
References
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Journal ArticleDOI

Theory of the firm: Managerial behavior, agency costs and ownership structure

TL;DR: In this article, the authors draw on recent progress in the theory of property rights, agency, and finance to develop a theory of ownership structure for the firm, which casts new light on and has implications for a variety of issues in the professional and popular literature.
Book

Multiple Regression: Testing and Interpreting Interactions

TL;DR: In this article, the effects of predictor scaling on the coefficients of regression equations are investigated. But, they focus mainly on the effect of predictors scaling on coefficients of regressions.
Book

Culture′s Consequences: International Differences in Work-Related Values

TL;DR: In his book Culture's Consequences, Geert Hofstede proposed four dimensions on which the differences among national cultures can be understood: Individualism, Power Distance, Uncertainty Avoidance and Masculinity as mentioned in this paper.
Book

Cultures and Organizations: Software of the Mind

TL;DR: In this article, the differences in the way strategists and their followers think are discussed, and practical solutions for those in business to help solve conflict between different groups are proposed, with a focus on how to find common problems which demand cooperation for the solution of these problems.
Book

Culture′s Consequences: Comparing Values, Behaviors, Institutions and Organizations Across Nations

TL;DR: In this paper, values and culture data collection, treatment and validation power distance Uncertainty Avoidance Individualism and Collectivism Masculinity and Femininity Long versus Short-Term Orientation Cultures in Organizations Intercultural Encounters Using Culture Dimension Scores in Theory and Research
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