National culture and firms’ cash holdings: The role of indulgence and its boundaries

Name: National culture and firms’ cash holdings: The role of indulgence and its boundaries
Author: Alipour, Ali, Yaprak, A.

İsim	National culture and firms’ cash holdings: The role of indulgence and its boundaries
Yazar	Alipour, Ali, Yaprak, A.
Basım Tarihi:	2024-02
Basım Yeri	- Elsevier
Konu	Cash holdings, Indulgence vs restraint, National culture, Leverage, Firm size, Shareholder protection
Tür	Süreli Yayın
Dil	İngilizce
Dijital	Evet
Yazma	Hayır
Kütüphane:	Özyeğin Üniversitesi
Demirbaş Numarası	0148-2963
Kayıt Numarası	bcfac4fb-0ed0-4f05-b5c2-f07a08996b9a
Lokasyon	Business Administration
Tarih	2024-02
Örnek Metin	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

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National culture and firms’ cash holdings: The role of indulgence and its boundaries

Yazar Alipour, Ali, Yaprak, A.

Basım Tarihi 2024-02

Basım Yeri - Elsevier

Konu Cash holdings, Indulgence vs restraint, National culture, Leverage, Firm size, Shareholder protection

Tür Süreli Yayın

Dil İngilizce

Dijital Evet

Yazma Hayır

Kütüphane Özyeğin Üniversitesi

Demirbaş Numarası 0148-2963

Kayıt Numarası bcfac4fb-0ed0-4f05-b5c2-f07a08996b9a

Lokasyon Business Administration

Tarih 2024-02

Örnek Metin 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