National culture and firm financial performance: A mediating role of firm financing decision

This study unfolds the role of national culture in determining the firm financial performance through channel of corporate financial policy. Sample size consists of 7623 non-financial sector firms from 13 Asian economies and fixed-effect model applies to estimates the regression. As the findings rev...

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Autores principales:	Umar Farooq, Jaleel Ahmed, Khurram Ashfaq, Ghias ul Hassan Khan, Shamshair Khan
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2020
Materias:	hofstede’s six national cultural dimensions capital structure firm performance asian economies Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/bd758f97a2184957a153b4456e0c43ae
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spelling	oai:doaj.org-article:bd758f97a2184957a153b4456e0c43ae2021-12-02T15:59:52ZNational culture and firm financial performance: A mediating role of firm financing decision2331-197510.1080/23311975.2020.1858640https://doaj.org/article/bd758f97a2184957a153b4456e0c43ae2020-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2020.1858640https://doaj.org/toc/2331-1975This study unfolds the role of national culture in determining the firm financial performance through channel of corporate financial policy. Sample size consists of 7623 non-financial sector firms from 13 Asian economies and fixed-effect model applies to estimates the regression. As the findings reveal, countries carrying high scores on power distance, individualism and long-term orientation face the low firm performance due to high transaction cost, agency cost, and problem of information asymmetric in their financing decision. In contrast, corporate firms from high masculine, high uncertainty avoidance and indulgence countries enjoy the better firm performance as these cultures indicate the effort assertive, resolving the uncertainties and co-operative behavior. In brief, the findings of study highlight the importance of national culture and give better insights into how cultural values determine the corporate financing policy which further affects the financial efficiency. It also provides the direct evidence on the effect of cultural values upon financial performance.Umar FarooqJaleel AhmedKhurram AshfaqGhias ul Hassan KhanShamshair KhanTaylor & Francis Grouparticlehofstede’s six national cultural dimensionscapital structurefirm performanceasian economiesBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 7, Iss 1 (2020)
institution	DOAJ
collection	DOAJ
language	EN
topic	hofstede’s six national cultural dimensions capital structure firm performance asian economies Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	hofstede’s six national cultural dimensions capital structure firm performance asian economies Business HF5001-6182 Management. Industrial management HD28-70 Umar Farooq Jaleel Ahmed Khurram Ashfaq Ghias ul Hassan Khan Shamshair Khan National culture and firm financial performance: A mediating role of firm financing decision
description	This study unfolds the role of national culture in determining the firm financial performance through channel of corporate financial policy. Sample size consists of 7623 non-financial sector firms from 13 Asian economies and fixed-effect model applies to estimates the regression. As the findings reveal, countries carrying high scores on power distance, individualism and long-term orientation face the low firm performance due to high transaction cost, agency cost, and problem of information asymmetric in their financing decision. In contrast, corporate firms from high masculine, high uncertainty avoidance and indulgence countries enjoy the better firm performance as these cultures indicate the effort assertive, resolving the uncertainties and co-operative behavior. In brief, the findings of study highlight the importance of national culture and give better insights into how cultural values determine the corporate financing policy which further affects the financial efficiency. It also provides the direct evidence on the effect of cultural values upon financial performance.
format	article
author	Umar Farooq Jaleel Ahmed Khurram Ashfaq Ghias ul Hassan Khan Shamshair Khan
author_facet	Umar Farooq Jaleel Ahmed Khurram Ashfaq Ghias ul Hassan Khan Shamshair Khan
author_sort	Umar Farooq
title	National culture and firm financial performance: A mediating role of firm financing decision
title_short	National culture and firm financial performance: A mediating role of firm financing decision
title_full	National culture and firm financial performance: A mediating role of firm financing decision
title_fullStr	National culture and firm financial performance: A mediating role of firm financing decision
title_full_unstemmed	National culture and firm financial performance: A mediating role of firm financing decision
title_sort	national culture and firm financial performance: a mediating role of firm financing decision
publisher	Taylor & Francis Group
publishDate	2020
url	https://doaj.org/article/bd758f97a2184957a153b4456e0c43ae
work_keys_str_mv	AT umarfarooq nationalcultureandfirmfinancialperformanceamediatingroleoffirmfinancingdecision AT jaleelahmed nationalcultureandfirmfinancialperformanceamediatingroleoffirmfinancingdecision AT khurramashfaq nationalcultureandfirmfinancialperformanceamediatingroleoffirmfinancingdecision AT ghiasulhassankhan nationalcultureandfirmfinancialperformanceamediatingroleoffirmfinancingdecision AT shamshairkhan nationalcultureandfirmfinancialperformanceamediatingroleoffirmfinancingdecision
_version_	1718385353326329856

National culture and firm financial performance: A mediating role of firm financing decision

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