National Culture and Corporate Cash Holdings around the World
By Yangyang Chen, Paul Y. Dou, S. Rhee, Cameron Truong, Madhu Veeraraghavan. 2015
335 citations recorded by the source corpus.
This paper examines whether cultural dimensions explain the variation in corporate cash holdings around the world as well as within the United States. We establish four major findings. First, in an international setting, corporate cash holdings are negatively associated with individualism and positively associated with uncertainty-avoidance. Second, individualism and uncertainty avoidance influence the precautionary motive for holding cash. Third, firms in individualistic states in the United States hold less cash than firms in collectivistic states. Fourth, we show that individualism is positively related to the firm’s capital expenditures, acquisitions, and repurchases while uncertainty avoidance is negatively related. Our findings remain unchanged after controlling for governance factors, firm attributes, and country characteristics.
Subfields: Accounting, Organizational Behavior and Human Resource Management
View Paper: https://www.semanticscholar.org/paper/3d6b8538ada7d488d306d18343ad816d1811d131
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In Accounting
In Organizational Behavior and Human Resource Management
Citations in the corpus
- Does board gender diversity affect corporate cash holdings? (2019, positive): “Our results are statistically significant across the three specifications (i.e., OLS, FE, and lagged board variables) and are consistent with prior literature (Tong, 2010; Chen et al., 2015).”
- Does corporate R&D investment affect firm environmental performance? Evidence from G-6 countries (2019, result): “The similar specification has been used in Chen et al. (2015). Panel B in Table 8 reports results, which”