National culture and capital structure decisions: Evidence from foreign joint ventures in China

• Main Authors: LI, Kai, GRIFFIN, Dale W., YUE, Heng, ZHAO, Longkai
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2010
• Subjects: Country of Origin; Cultural Values; Embeddedness; Foreign Direct Investments; Leverage; Mastery; Accounting; Sociology of Culture
• Online Access: https://ink.library.smu.edu.sg/soa_research/1581; https://ink.library.smu.edu.sg/context/soa_research/article/2608/viewcontent/SSRN_id1676900.pdf
• Institution: Singapore Management University

We investigate the role of firms’ country of origin in financial leverage decisions using data on foreign joint ventures in China. We hypothesize that national culture enters the joint optimization process leading to foreign joint ventures’ leverage decisions and that it affects leverage decisions b...