We examine how time preferences impact the financing decision of firms. We hypothesize that the degree of long-term orientation in a country is positively related to the use of bank relationship lending. Based on a thorough theoretical investigation and an extensive empirical analysis using a...

This study extends the current state of research on venture capital (VC) determinants by in-troducing a behavioral perspective. We focus on individuals' risk perception and connect it to Hofstede's cultural dimensions of individualism and uncertainty avoidance. Individualism is related to...

This study assesses whether variations in capital structure across countries can be explained by cultural traits. We analyze capital structure choices of firms in 42 countries and provide evidence that these decisions are affected by the degree of individualism of the country where the firm is...

This study extends the current state of research on corporate governance and firm value determinants by introducing culture as a proxy for risk aversion. We focus on individuals' risk aversion and connect it to Hofstede's cultural dimensions of uncertainty avoidance. In a cross-country empirical...

This paper investigates whether managerial rhetoric in the Management Discussion & Analysis section of 10-K filings can help gauge the level of managerial opportunism in a firm. We find that the use of trust-related words is connected to inefficient investment decisions and poor operating...

We investigate investors' time preferences and takeover performance outcomes in a cross-disciplinary international study. We use a cultural measure on long-term orientation (LTO) to capture investors' time preferences. Additionally, we study how investor protection and the nature of the deal...

Despite a considerable premium on equity with respect to risk free assets, many households do not own stocks. We ask why the prevalence of stockholding is so limited. We focus on individuals' attitudes towards risk and identify relevant factors that affect the willingness to take financial...

Based on a large international sample, we examine the effects of CSR on the cost of equity under different levels of investor protection. In countries where investor protection is strong (poor), our results show that the cost of equity falls (rises) when a firm invests in CSR. Our findings are...

We investigate the influence of managerial preferences proxied by national culture on takeover performance in a cross-disciplinary international study. To this end, we rely on the cultural dimensions according to Hofstede et al. (2010). Some managerial preferences are related to certain cultural...