Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
8942373 | Pacific-Basin Finance Journal | 2018 | 45 Pages |
Abstract
We examine the nature of impact of national culture on bank leverage using a broad sample of 1701 banks from 79 countries, over the period 2000-2013, i.e., 18,996 bank-year observations. We find that banks in countries with high individualism culture dimensions hold more leverage while, banks in countries with high uncertainty-avoidance, power distance, and long-term orientation have less leverage. Notably, bank size substantially moderates these cultural effects. Our findings are robust to endogeneity, and alternative proxies for the dependent and core explanatory variables.
Keywords
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Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Mamiza Haq, Daniel Hu, Robert Faff, Shams Pathan,