TY - JOUR
T1 - New evidence on national culture and bank capital structure
AU - Haq, Mamiza
AU - Hu, Daniel
AU - Faff, Robert
AU - Pathan, Shams
N1 - Funding Information:
We thank Balasingham Balachandran [Special Issue Editor, PBFJ], anonymous reviewer, Peter Clarkson, Charles Littrell, Murillo Campello, Anis Samet, Harald Scheule, Teri Yohn, Necmi Avkiran, conference and seminar participants at the 2015 UN DESA and Bangladesh Bank Joint Conference, 2016 IFABS Barcelona Conference and The University of Queensland for their helpful comments. In the very formative stages of developing this research idea, our thinking was greatly assisted by completing the “pitching template” created by Faff (2015a, 2015b) . Finally, Shams Pathan gratefully acknowledges the research supports received under the Australian Research Council Discovery Early Career Research Award (ARC DECRA) # DE140100253 . The authors are responsible for any remaining errors.
Funding Information:
We thank Balasingham Balachandran [Special Issue Editor, PBFJ], anonymous reviewer, Peter Clarkson, Charles Littrell, Murillo Campello, Anis Samet, Harald Scheule, Teri Yohn, Necmi Avkiran, conference and seminar participants at the 2015 UN DESA and Bangladesh Bank Joint Conference, 2016 IFABS Barcelona Conference and The University of Queensland for their helpful comments. In the very formative stages of developing this research idea, our thinking was greatly assisted by completing the ?pitching template? created by Faff (2015a, 2015b). Finally, Shams Pathan gratefully acknowledges the research supports received under the Australian Research Council Discovery Early Career Research Award (ARC DECRA) # DE140100253. The authors are responsible for any remaining errors.
Publisher Copyright:
© 2017 Elsevier B.V.
Copyright:
Copyright 2018 Elsevier B.V., All rights reserved.
PY - 2018/9
Y1 - 2018/9
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=85035081665&partnerID=8YFLogxK
U2 - 10.1016/j.pacfin.2017.09.005
DO - 10.1016/j.pacfin.2017.09.005
M3 - Article
AN - SCOPUS:85035081665
SN - 0927-538X
VL - 50
SP - 41
EP - 64
JO - Pacific Basin Finance Journal
JF - Pacific Basin Finance Journal
ER -