National Culture and Corporate Governance
Aachen University - Department of Finance
Astrid Juliane Salzmann
RWTH Aachen University - Chair for Business Administration, particularly Business Finance
August 11, 2009
In a series of cross-country comparisons, we show that national culture is statistically significant in differentiating countries with different corporate governance systems. Using the Schwartz cultural value model and data on corporate governance systems, we analyze the impact of national culture on six dimensions of corporate governance. Countries that have stronger emphasis on the dimensions of Embeddedness, Hierarchy and Mastery are more likely to have a bank-based system, countries with a stronger emphasis on Autonomy, Egalitarianism and Harmony tend to have market-based systems. The findings suggest several implications for the ongoing debate on convergence and divergence of corporate governance systems.
Number of Pages in PDF File: 65
Keywords: national culture, corporate governance
JEL Classification: A13, G10, G30, N20, Z13working papers series
Date posted: September 1, 2008 ; Last revised: January 7, 2011
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