How does culture influence corporate risk-taking?

• Main Authors: LI, Kai, GRIFFIN, Dale, YUE, Heng, ZHAO, Longkai
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2013
• Subjects: earnings discretion; formal institutions; harmony; individualism; national culture; corporate; risk-taking; uncertainty avoidance; Corporate Finance; Critical and Cultural Studies
• Online Access: https://ink.library.smu.edu.sg/soa_research/1709; https://ink.library.smu.edu.sg/context/soa_research/article/2736/viewcontent/File010.pdf
• Institution: Singapore Management University

We investigate the role of national culture in corporate risk-taking. We postulate that culture influencescorporate risk-taking both through its effect on managerial decision-making and through its effect on acountry’s formal institutions. Further, we postulate that the influence of culture is condi...