National culture influences many facets of business

Reference no: EM13835494

National Culture and International Differences in the Cost of Equity Capital Sidney John Gray · Tony Kang · Yong Keun Yoo

Abstract: 0

Prior literature suggests that national culture influences many facets of business operations including corporate governance, capital structure, managerial compensation, foreign direct investment behavior and accounting systems.

Extending this line of literature, we examine whether key aspects of national culture are also related to international differences

in the cost of equity capital. 0 In a cross-country sample of 32 countries during 1992–2006, we find that the cost of equity capital tends to be higher in more individualistic and less uncertainty avoiding societies consistent with their greater risk-taking orientation. 0

This finding contributes to the international business and financial literature by identifying national culture as an important institutional variable influencing firms’ cost of equity capital around the world. Keywords: National culture · Cost of equity capital · Individualism · Uncertainty avoidance · Risk-taking Manag Int Rev (2013) 53:899–916 DOI 10.1007/s11575-013-0182-3 N

Reference no: EM13835494

Questions Cloud

Compute the annual operating cash flow : (11%) This printer will be fully depreciated by the straight-line method over its 7-year economic life, and will be sold for$60,000 at the termination of the 5-year project. The variable costs are $26 per copy, and annual fixed costs are $80,000. ..

Competitive market for hot dogs : Problem 1. Suppose that, in a large city, 200 identical street vendors compete in a competitive market for hot dogs.

Critique how well the organization adapts to change : Critique how well the organization adapts to change

Lean came to prominence in the academic literature : Lean came to prominence in the academic literature during the mid-1980s as a result of the increased curiosity surrounding the ‘secret’ of practical Japanese manufacturing techniques such as Just-In-Time (JIT) and the Toyota Production System (TPS) i..

National culture influences many facets of business : Prior literature suggests that national culture influences many facets of business operations including corporate governance, capital structure, managerial compensation, foreign direct investment behavior and accounting systems.

Operations and information management : You are asked to provide a critical discussion on the implementation of lean which addresses the following questions: 1) Is there a best way to implement lean? Are all organisations suitable for lean implementation?

Describe the structure and culture at your organization : Describe the structure and culture at your organization

Explain why decision-making is more complex : Explain why decision-making is more complex in the international environment, using a current article (within the past two years) as an example

One page proposal paper sheet on program management : Write a 10 pages research paper on Program Management and its issues or interest. The 10pages does not include the table of content or references

User Account

All Pages