National culture and socially responsible fund flows

National culture and green bond issuance around the world

“…Li et al, 2011), initial public offering underpricing (Chourou et al, 2018;Geng & Tan, 2021), M&A activity, post-M&A integration and synergies (Ahern et al, 2015;Y. Weber et al, 1996), international investment flows (Siegel et al, 2011), stock performance and investors' behaviour (Chui et al, 2010;Eun et al, 2015), as well as on environmentally related outcomes, such as country overall environmental performance (Griffin et al, 2021;Ringov & Zollo, 2007) and social responsible investment (Connelly, 2017;Labidi et al, 2021). However, the impact of national cultural values on green bond market development has so far remained unexplored.…”

“…The analysis of the effect of national culture has been used incorporated in different contexts in recent years, including corporate and government finance decisions. The literature has examined its effect on various corporate outcomes, such as corporate innovation (Boubakri et al, 2021), corporate external financing decisions (Kutan et al, 2021), capital structure decisions (Chui et al, 2002; K. Li et al, 2011), initial public offering underpricing (Chourou et al, 2018; Geng & Tan, 2021), M&A activity, post‐M&A integration and synergies (Ahern et al, 2015; Y. Weber et al, 1996), international investment flows (Siegel et al, 2011), stock performance and investors' behaviour (Chui et al, 2010; Eun et al, 2015), as well as on environmentally related outcomes, such as country overall environmental performance (Griffin et al, 2021; Ringov & Zollo, 2007) and social responsible investment (Connelly, 2017; Labidi et al, 2021). However, the impact of national cultural values on green bond market development has so far remained unexplored.…”

“…Connelly (2017) documents a positive but insignificant relationship between power distance and socially responsible investment. Labidi et al (2021) find that power distance adversely affects conventional investment flows but it exerts no significant differential effect on socially responsible investment flows. On the basis of the above literature, we conclude that power distance has an impact on green bond issuance, which direction remains largely an empirical issue.…”

“…Ho et al (2012) find support for the idea that collectivist societies have higher corporate social performance. Labidi et al (2021) find that individualism has a strong positive effect on conventional investment flows but no significant relation with socially responsible investment flows. From a government standpoint, a collectivist society could interfere more to secure collective and social well‐being, which could also include environmental and social welfare considerations.…”

“…Ringov and Zollo (2007) conduct an international study in 23 countries (Asia, North America and Europe) and find that cultural masculinity is associated with lower levels of social and environmental performance. Labidi et al (2021) find that masculinity is adversely associated with socially responsible investment flows. Sievänen et al (2013) find that Sweden and Norway who have the lowest masculinity scores are associated with the highest levels of socially responsible investment per capita.…”