Cultural tightness and financial reporting behavior around the world

Choi, Ahrum; Jia, Jingyi; Song, Byron Y.; Zhou, Gaoguang

doi:10.1016/j.jbusres.2024.114656

Cited by 1 publication

(1 citation statement)

References 95 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The first is aimed at curtailing endogeneity through two-stage least squares regression. Following Nash and Patel (2019), Frijns et al (2022), , Choi et al (2024), andGaganis et al (2020), we avail ourselves of the frontier method (i.e., genetic distance from the country with the maximum power distance) to lessen the impact of unobserved heterogeneity upon the coefficient of interest in this study. Thus, a country's power distance is instrumented by the corresponding genetic distance from the country that has the highest such score, Slovakia.…”

Section: Methodsmentioning

confidence: 99%

Follow the Leader: How Culture Gives Rise to a Behavioral Bias That Leads to Higher Greenhouse Gas Emissions

Zhao,

Vafai,

Velazquez

et al. 2024

JRFM

View full text Add to dashboard Cite

This research investigates the influence of national culture, particularly power distance, on firms’ carbon dioxide (CO2) emissions. Drawing on a large international dataset spanning over a decade, we examine how power distance, agency conflict, and socioeconomic stability interact to shape firms’ emission decisions. Our analysis reveals a significant positive relationship between power distance and firms’ CO2 emissions, indicating that firms located in countries characterized by higher power distance tend to emit more greenhouse gases (GHGs). Furthermore, we find that agency conflict moderates this relationship, with firms experiencing high levels of debt or paying substantial dividends exhibiting lower emissions in high power distance environments. Additionally, socioeconomic stability attenuates the positive association between power distance and emissions, suggesting that the effectiveness of cultural influences on emission decisions is contingent upon the stability of the societal context. These findings underscore the importance of considering cultural dimensions, agency dynamics, and socioeconomic conditions in understanding corporate environmental behavior. Our research contributes to the literature by providing empirical evidence of the nuanced interplay between national culture, agency conflict, and socioeconomic stability in shaping firms’ emission decisions. Policymakers and practitioners can use these insights to develop more targeted environmental policies and strategies aimed at promoting sustainable development globally.

show abstract

Section: Methodsmentioning

confidence: 99%