National Culture and Cash Holdings Around the World

Truong, Cameron; Chen, Yangyang; Dou, Yiwen; Rhee, S. Ghon; Veeraraghavan, Madhu

doi:10.2139/ssrn.1976694

Cited by 5 publications

(3 citation statements)

References 15 publications

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“…For example, Truong et al. () find that public firms in individualistic countries hold less cash. In models 8 and 9 of Table , we rerun the regression for two subsamples of firms with abundant internal funds.…”

Section: Alternative Explanationsmentioning

confidence: 99%

“…We next look more closely at the role of internal funds, as firms in high-Embeddedness and -Hierarchy countries have greater internal funds and hence do not need to rely on current net income. For example, Truong et al (2012) find that public firms in individualistic countries hold less cash. In models 8 and 9 of Table VII, we rerun the regression for two subsamples of firms with abundant internal funds.…”

Section: Do Firms In High-embeddedness/hierarchy Countries Have Momentioning

confidence: 99%

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National Culture and Profit Reinvestment: Evidence from Small and Medium‐Sized Enterprises

Ghoul

Guedhami

Kwok

et al. 2015

Financial Management

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We examine the role of national culture—an important informal institution—in the profit reinvestment decisions of small firms in emerging markets. Prior economic development literature focuses on formal institutions as determinants of growth. However, in emerging markets where formal institutions are less developed, informal institutions should have more of a direct versus indirect impact through formal institutions. We find that Schwartz's cultural dimensions of Embeddedness and Hierarchy negatively affect profit reinvestment, and that access to external financing (strength of property rights) is more important for reinvestment decisions in countries with low (high) Embeddedness and Hierarchy.

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Section: Alternative Explanationsmentioning

confidence: 99%

Section: Do Firms In High-embeddedness/hierarchy Countries Have Momentioning

confidence: 99%

National Culture and Profit Reinvestment: Evidence from Small and Medium‐Sized Enterprises

Ghoul

Guedhami

Kwok

et al. 2015

Financial Management

View full text Add to dashboard Cite

show abstract

“…framework comes from recent corporate finance studies which find the index to be correlated with measures of managerial overconfidence(Chen et al (2012),Truong et al (2013)). …”

mentioning

confidence: 99%

Media Makes Momentum

2014

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Relying on 2.2 million articles from 45 national and local U.S. newspapers between 1989 and 2010, we find that firms particularly covered by the media exhibit ceteris paribus significantly stronger momentum. The effect depends on article tone, reverses in the long-run, is more pronounced for stocks with high uncertainty, and stronger in states with high investor individualism. Our findings suggest that media coverage can exacerbate investor biases, leading return predictability to be strongest for firms in the spotlight of public attention. These results collectively lend credibility to an overreaction-based explanation for the momentum effect.

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