Secrecy, information shocks, and corporate investment : Evidence from European Union countries

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dc.contributor Bank of Finland Mazboudi, Mohamad Hasan, Iftekhar 2017-08-09T07:44:55Z 2017-08-09T07:44:55Z 2017
dc.identifier.isbn 978-952-323-176-4
dc.identifier.issn 1456-6184
dc.description.abstract This study examines how national culture affects corporate investment. We argue that national culture affects corporate investment efficiency through the level of secrecy that national culture exhibits. Using a sample of firms from eight culturally-diverse European Union countries, we find that the level of secrecy that national culture exhibits is negatively related to corporate investment efficiency after controlling for a number of firm- and country-level factors. We also find that the negative relation between national culture and corporate investment efficiency is mitigated by an exogenous shock to the information asymmetry problem between managers and investors. Our study highlights the importance of the cultural value of secrecy/transparency as a determinant of investment efficiency at the firm-level.
dc.format.extent 33
dc.language.iso ENG
dc.subject EU
dc.subject Eurooppa
dc.subject avoimuus
dc.subject.other culture
dc.subject.other secrecy
dc.subject.other investment efficiency
dc.subject.other information asymmetry
dc.subject.other information environment
dc.title Secrecy, information shocks, and corporate investment : Evidence from European Union countries
dc.type Paper
dc.identifier.urn URN:NBN:fi:bof-201708091483
dc.subject.jel D82
dc.subject.jel G31
dc.subject.jel M41 Bank of Finland Research Discussion Papers
dc.series.number 19/2017
dc.series.sortingnumber 0019 8.8.2017
dc.subject.yso yritykset
dc.subject.yso investoinnit
dc.subject.yso tehokkuus
dc.subject.yso informaatio
dc.subject.yso kulttuuri
dc.description.publication Published in Journal of International Financial Markets, Institutions and Money 54 ; May ; 2018
bof-internal.includedInCRIS 1
dc.type.okm D4

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