Author
Alipour, Ali, Yaprak, A.
Publication Date
2024-02
Publication Place
-
Elsevier
Subject
Cash holdings, Indulgence vs restraint, National culture, Leverage, Firm size, Shareholder protection
Type
Periodical
Language
English
Digital
Yes
Manuscript
No
Library
Özyeğin University
Library Asset ID
0148-2963
Record ID
bcfac4fb-0ed0-4f05-b5c2-f07a08996b9a
Library Location
Business Administration
Date
2024-02
Sample Text
We examine the influence of indulgence vs restraint (IVR), an understudied national culture dimension of Hofstede's framework, on firms’ cash holdings to shed light on how culture influences this firm behavior and the boundaries of this effect. We argue that, when compared to their restrained-society counterparts, indulgent-society firms will hold higher cash levels due to their greater propensity for risky investments (precautionary motive) and their managers’ weaker moral constraints (agency motive). We also argue that firms’ leverage and risky investment levels will intensify, and firm size and countries’ shareholder protection levels will attenuate the positive effect of indulgence on firms’ cash holdings. The results of our HLM analyses on 16,997 firms across 39 countries verify our arguments and contribute to a more enhanced understanding of national culture's role in firms’ cash holdings.
Tanımlayıcı
WOS:001129925100001
DOI
10.1016/j.jbusres.2023.114414
Cilt
172
