Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212390 
Year of Publication: 
2017
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 19/2017
Publisher: 
Bank of Finland, Helsinki
Abstract: 
This study examines how national culture affects corporate investment. We argue that national culture affects corporate investment efficiency through the level of secrecy that national culture exhibits. Using a sample of firms from eight culturally-diverse European Union countries, we find that the level of secrecy that national culture exhibits is negatively related to corporate investment efficiency after controlling for a number of firm- and country-level factors. We also find that the negative relation between national culture and corporate investment efficiency is mitigated by an exogenous shock to the information asymmetry problem between managers and investors. Our study highlights the importance of the cultural value of secrecy/transparency as a determinant of investment efficiency at the firm-level.
JEL: 
D82
G31
M41
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-176-4
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.