Skip to main content
Disciplines
Automotive Business IT + Informatics Construction + Real Estate Electrical Engineering + Electronics Energy + Sustainability Insurance + Risk Finance + Banking Management + Leadership Marketing + Sales Mechanical Engineering + Materials
Events
DE
EN
Books
Journals
Topic Page
Marketing
Start single access now
Access for companies
EXTENDED SEARCH
Log in
Top
Published in:
Where Are the Shareholders’ Mansions? CEOs’ Home Purchases, Stock Sales, and Subsequent Company Performance Read chapter Read first chapter

2012 | OriginalPaper | Chapter

National Culture and Corporate Governance

Authors : Wolfgang Breuer, Astrid Juliane Salzmann

Published in: Corporate Governance

Publisher: Springer Berlin Heidelberg

Log in

Activate our intelligent search to find suitable subject content or patents.

search-config
loading …

Abstract

In a series of cross-country comparisons, we show that national culture is statistically significant in differentiating countries with different corporate governance systems. Using the Schwartz cultural value model and data on corporate governance systems, we analyze the impact of national culture on six dimensions of corporate governance. Countries that have stronger emphasis on the dimensions of Embeddedness, Egalitarianism, and Harmony are more likely to have bank-based systems, while countries with a stronger emphasis on Autonomy, Hierarchy, and Mastery tend to have market-based systems. The findings suggest several implications for the ongoing debate on convergence and divergence of corporate governance systems and policy reforms regarding financial crises.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

inform now
previous chapter A Sustainable Future for Corporate Governance Theory and Practice
next chapter Effective Governance in the Family Owned Business
Literature
Aguilera, R., & Jackson, G. (2003). The cross-national diversity of corporate governance: Dimensions and determinants. Academy of Management Review, 28(3), 447–465.
Bebschuk, L., & Roe, M. (1999). A theory of path dependence in corporate ownership and corporate governance. Stanford Law Review, 52(1), 127–170.CrossRef
Berkovitch, E., & Israel, R. (1999). Optimal bankruptcy laws across different economic systems. The Review of Financial Studies, 12(2), 347–377.CrossRef
Berle, A., & Means, G. (1932). The modern corporation and private property. New York: Macmillan.
Bruner, C. (2011). Corporate governance reform in a time of crisis. The Journal of Corporation Law, 36(2), 309–341.
Bühner, R., Rasheed, A., Rosenstein, J., & Yoshikawa, T. (1998). Research on corporate governance: A comparison of Germany, Japan, and the United States. Advances in International Comparative Management, 12, 121–155.
Bushman, R., & Smith, A. (2001). Financial accounting information and corporate governance. Journal of Accounting Economics, 32(1–3), 237–333.CrossRef
Chui, A., Lloyd, A., & Kwok, C. (2002). The determination of capital structure: Is national culture a missing piece to the puzzle? Journal of International Business Studies, 33(1), 99–127.CrossRef
De Jong, E., & Semenov, R. (2006). Cultural determinants of ownership concentration across countries. International Journal of Business Governance and Ethics, 2(1–2), 145–165.
Demirgüç-Kunt, A., & Levine, R. (2001). Financial structure and economic growth: A cross-country comparison of banks, markets, and development. Cambridge, MA: MIT Press.
Doidge, C., Karolyi, G. A., & Stulz, R. (2007). Why do countries matter so much for corporate governance? Journal of Financial Economics, 86(1), 1–39.CrossRef
Fischer, C., & Rudolph, B. (2000). Grundformen von Finanzsystemen. In G. Obst, O. Hintner, J. v. Hagen, J. v. Stein (Eds.), Geld-, Bank- und Börsenwesen: Handbuch des Finanzsystems (40th ed., pp. 371–446). Stuttgart: Schäffer-Poeschel.
Franks, J., & Mayer, C. (1995). Ownership and control. In H. Siebert (Ed.), Trends in business organization: Do participation and cooperation increase competitiveness? (pp. 171–195). Tübingen: Mohr Siebeck.
Franks, J., & Mayer, C. (1998). Bank control, takeovers and corporate governance in Germany. Journal of Banking and Finance, 22(10), 1385–1403.CrossRef
Franks, J., & Mayer, C. (2001). Ownership and control of German corporations. The Review of Financial Studies, 14(4), 943–977.CrossRef
Granovetter, M. (1985). Economic action and social structure: The problem of embeddedness. The American Journal of Sociology, 91(3), 481–510.CrossRef
Guillén, M. F. (2000). Corporate governance and globalization: Is there convergence across countries? Advances in International Comparative Management, 13, 175–204.
Guiso, L., Sapienza, P., & Zingales, L. (2006). Does culture affect economic outcomes? Journal of Economic Perspectives, 20(2), 23–48.CrossRef
Hackethal, A., & Schmidt, R. (2000). Finanzsystem und Komplementarität. Kredit und Kapital, 15, 53–102.
Haxhi, I., & van Ees, H. (2010). Explaining diversity in the worldwide diffusion of codes of good governance. Journal of International Business Studies, 41(4), 710–726.CrossRef
Hofstede, G. (1984). Cultural dimensions in management and planning. Asia Pacific Journal of Management, 1(2), 81–99.CrossRef
Hofstede, G. (2001). Culture’s consequences – comparing values, behaviors, institutions, and organizations across nations (2nd ed.). Thousand Oaks: Sage.
House, R., Hanges, P., Javidan, M., Dorfman, P., & Gupta, V. (2004). Culture, leadership, and organizations: The globe study of 62 societies. Thousand Oaks: Sage.
Inglehart, R., Basanez, M., & Moreno, A. (1998). Human beliefs and values: A cross-cultural sourcebook. Ann Arbour: University of Michigan Press.
Jensen, M., & Meckling, W. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.CrossRef
Kaufmann, D., Kraay, A., Mastruzzi, M. (2006). Governance matters V: Governance indicators for 1996–2005. Policy research working paper series, No. 4012. Washington: The World Bank.
Kroeber, A., & Kluckhohn, C. (1952). Culture − A critical review of concepts and definitions. Cambridge, MA: Peabody Museum.
La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (1999). The quality of government. Journal of Law, Economics, and Organization, 15(1), 222–279.CrossRef
La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (2000). Investor protection and corporate governance. Journal of Financial Economics, 58(1–2), 3–27.CrossRef
La Porta, R., López-de-Silanes, F., Shleifer, A., & Vishny, R. (1997). Legal determinants of external finance. The Journal of Finance, 52(3), 1131–1150.
La Porta, R., Djankov, S., López-de-Silanes, F., & Shleifer, A. (2006). The law and economics of self-dealing. Journal of Financial Economics, 88(3), 430–465.
Li, J., & Harrison, J. R. (2008). National culture and the composition and leadership structure of boards and directors. Corporate Governance: An International Review, 16(5), 375–385.CrossRef
Licht, A. (2001). The mother of all path dependencies: Toward a cross-cultural theory of corporate governance systems. Delaware Journal of Corporate Law, 26(1), 147–205.
Licht, A., Goldschmidt, C., & Schwartz, S. (2005). Culture, law, and corporate governance. International Review of Law and Economics, 25(2), 229–255.CrossRef
Lopez-Claros, A., Porter, M., Sala-i-Martin, X., & Schwab, K. (2006). The global competitiveness report 2006–2007. Hampshire: World Economic Forum.
Ng, S., Lee, J., & Soutar, G. (2007). Are Hofstede’s and Schwartz’s value frameworks congruent? International Marketing Review, 24(2), 164–180.CrossRef
Prowse, S. (1995). Corporate governance in an international perspective: A survey of corporate control mechanisms among large firms in the United States, the United Kingdom, Japan and Germany. Financial Markets, Institutions and Instruments, 4(1), 1–63.
Roland, G. (2004). Understanding institutional change: Fast-moving and slow-moving institutions. Studies in Comparative International Development, 38(4), 109–131.CrossRef
Schmidt, R. J., & Spindler, G. (2002). Path dependence, corporate governance and complementarity. International Finance, 5(3), 311–333.CrossRef
Schwartz, S. (1994). Beyond individualism/collectivism: New cultural dimensions of values. In U. Kim, H. Triandis, C. Kagitcibasi, S. C. Choi, & G. Yoon (Eds.), Individualism and collectivism: Theory, method, and applications (Vol. 18, pp. 85–99). Thousand Oaks: Sage.
Schwartz, S. (1999). A theory of cultural values and some implications for work. Applied Psychology: An International Review, 48(1), 23–47.CrossRef
Schwartz, S. (2004). Mapping and interpreting cultural differences around the world. In H. Vinken, J. Soeters, & P. Ester (Eds.), Comparing cultures – dimensions of culture in a comparative perspective (pp. 43–73). Leiden: Brill.
Sekely, W., & Collins, J. M. (1988). Cultural influences on international capital structure. Journal of International Business Studies, 19(1), 87–100.CrossRef
Shao, L., Kwok, C., & Guedhami, O. (2010). National culture and dividend policy. Journal of International Business Studies, 41(8), 1391–1414.CrossRef
Shleifer, A., & Vishney, R. (1997). A survey of corporate governance. The Journal of Finance, 52(2), 737–783.CrossRef
Smith, P., Peterson, M., & Schwartz, S. (2002). Cultural values, sources of guidance, and their relevance to managerial behavior: A 47-nation study. Journal of Cross-Cultural Psychology, 33(2), 188–202.CrossRef
Stulz, R. (2005). The limits of financial globalization. The Journal of Finance, 60(4), 1595–1638.CrossRef
Tyrell, M., & Schmidt, R. (2001). Pensions- und Finanzsysteme in Europa: Ein Vergleich unter dem Gesichtspunkt der Komplementarität. In H.-C. Mager, H. Schäfer, K. Schrüfer (Eds.), Private Versicherung und Soziale Sicherung (pp. 103–121.). Marburg: Metropolis-Verlag.
Williamson, O. (2000). The new institutional economics: Taking stock, looking ahead. Journal of Economic Literature, 38(3), 595–613.CrossRef
Metadata
Title
National Culture and Corporate Governance
Authors
Wolfgang Breuer
Astrid Juliane Salzmann
Copyright Year
2012
Publisher
Springer Berlin Heidelberg
Book
Corporate Governance

Print ISBN: 978-3-642-31578-7

Electronic ISBN: 978-3-642-31579-4

Copyright Year: 2012

DOI
https://doi.org/10.1007/978-3-642-31579-4_16