The Influence of Regional Cultural Factor s on Corporate Behavior

Abstract

Differences in business behavior due to regional cultural differences are a primary concern in studying the capital markets. This paper highlights the impact of regional trust, regional corruption, and religious beliefs on local business behavior. Firstly, the paper compares the phenomena that occur in companies because of cultural differences between regions. Then, this study analyzes the effect of these regional differences on local business behavior, taking the attitudes of auditors in China and the United States toward the discovery of problems, the prevalence of corruption in 64 transition economies in Eastern Europe and the Middle East and North Africa, and the impact of Islam on local business as examples. Secondly, the paper analyzes the factors influencing business behavior in terms of social trust, corruption, and religion based on the existing literature. Finally, after summarizing the findings of the above literature, this paper suggests possible future research directions. Overall, this study provides a new insight for future studies concerning the impact of local culture on business activities.