The effect of CEOs’ cultural heritage on US firms’ long term invesment
This paper investigates if a CEO’s cultural heritage in healthcare and technology firms from the US have an effect on economic decisions. We use Hofstede’s Long-Term Orientation (LTO) index to examine the relationship between CEO’s cultural long-term orientation and investment decisions, namely Rese...
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| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project |
| Language: | English |
| Published: |
2018
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/74119 |
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| Institution: | Nanyang Technological University |
| Language: | English |
| Summary: | This paper investigates if a CEO’s cultural heritage in healthcare and technology firms from the US have an effect on economic decisions. We use Hofstede’s Long-Term Orientation (LTO) index to examine the relationship between CEO’s cultural long-term orientation and investment decisions, namely Research and Development (R&D) and capital expenditure. The data captures the observations of 1770 CEOs and other C-suite executives from 1980 to 2017. Overall, our results are in contrast to the commonly held view that a long-term oriented CEO is more likely to spend more on long-term investments. We find that CEO’s LTO has a negative but weak relationship with R&D and capital expenditure in both healthcare and technology firms. |
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