What matters for the future? Comparing Globe's future orientation with Hofstede's long-term orientation

Abstract

PurposeThis paper aims to compare the future orientation (FO) society practices dimension of the Globe model with Hofstede's long-term orientation (LTO) by testing their causal effects on three firm-level variables: cash holdings, long-term investments and acquisitions. In doing so, this research challenges the already taken-for-granted assumption in the empirical research that the two dimensions are equivalent.Design/methodology/approachHierarchical linear modeling (HLM) was used to test the hypotheses on 7,065 firms across 49 countries between 2000 and 2017.FindingsThe findings show that the causal impacts of FO society practices and LTO on a given construct are not consistent. Although LTO increases cash holdings, the impact of FO society practices on this variable is insignificant. Additionally, unlike FO society practices, which significantly increases long-term investments and acquisitions, LTO does not influence long-term investments and decreases acquisitions.Originality/valueThis study is valuable since it addresses the confusion surrounding the similarities and differences between FO society practices and LTO. Despite the dissimilarity also emphasized by Globe, Hofstede claims that they are equivalent, and the great majority of the empirical literature has assumed them to be equivalent in their analyses. Addressing this confusion, this research provides further empirical evidence that these two dimensions are dissimilar. The additional important contribution of the study is theorizing and examining the impact of FO society practices and LTO on the firm-level outcomes that reflect their temporal orientation (i.e. long-term investments and acquisitions), which is surprisingly neglected in the literature.

Individual Cultural Values and Profit Expectations on Investment Intentions in Crypto Currency: Religiosity as a Moderating Variable

“…Social Influences also exert an impact. Gender stereotypes and societal norms can shape investment choices (Alipour, 2021;Hanini, 2020). Some men may feel compelled to demonstrate financial prowess or resilience by investing in assets perceived as high-risk, such as cryptocurrencies.…”

Tata Kelola Perusahaan, Keuangan, Merger dan Akuisisi, dan Efisiensi Modal Manusia Sebagai Variabel Moderasi

“…Perusahaan akan meningkatkan kepemilikan kas sebagai cara melindungi perusahaan terhadap ketidakpastian masa depan (Chireka & Fakoya, 2017). Perusahaan tidak menargetkan tingkat kepemilikan kas yang optimal, tetapi kepemilikan kas perusahaan sebagai fungsi dari keputusan investasi dan perdanaan (Alipour, 2021). Tingkat kas yang tinggi dapat memberikan lebih banyak keleluasan kepada manajer dan meningkatkan merger dan akuisisi pada perusahaan (Awan et al, 2020).…”

“…Perusahaan yang kecil lebih berisiko, maka perlunya manajer yang menghindari risiko dengan modal manusia yang tidak dapat didiversifikasi cenderung menyimpan lebih banyak uang tunai untuk menghindari jika terjadi masalah (Shah & Shah, 2016). Perusahaan menghabiskan lebih banyak modal untuk merger dan akuisisi yang dianggap berisiko, sehingga memerlukan komitmen sumber daya manusia yang tinggi (Alipour, 2021). Sumber daya manusia juga disebut sebagai aset hidup perusahaan, karena memberikan wawasan berharga mengenai kendala yang dihadapi merger dan akuisisi (Gulia & Singhal, 2020).…”