The IRMA Community
Newsletters
Research IRM
Click a keyword to search titles using our InfoSci-OnDemand powered search:
|
Bank vs. Bond Finance: A Cultural View of Corporate Debt Financing
|
|
Author(s): Wolfgang Breuer (RWTH Aachen University, Germany), Benjamin Quinten (RWTH Aachen University, Germany)and Astrid J. Salzmann (RWTH Aachen University, Germany)
Copyright: 2015
Pages: 27
Source title:
Handbook of Research on Global Business Opportunities
Source Author(s)/Editor(s): Bryan Christiansen (PryMarke, LLC, USA)
DOI: 10.4018/978-1-4666-6551-4.ch014
Purchase
|
Abstract
This chapter enhances the growing research field of Cultural Finance by analyzing the relationship between cultural value types—in particular, Autonomy and Embeddedness—and the corporate debt choice of either bank or bond financing. The authors derive their hypotheses from a slight modification and re-interpretation of the Chemmanur and Fulghieri (1994) approach of “relationship lending.” Referring to the importance of specific human capital investments and individuals' future orientation, they show that firms in autonomy cultures tend toward bank finance, whereas firms in embeddedness cultures show a preference for financing by issuing bonds. In a cross-country analysis with 71 countries, the authors find empirical evidence for their established hypotheses.
Related Content
|
Monia Ben Ltaifa, Walid Chouari, Abdelkader Mohamed Sghaier Derbali.
© 2024.
30 pages.
|
|
Filiz Mızrak.
© 2024.
21 pages.
|
|
Aytaç Gökmen.
© 2024.
12 pages.
|
|
Maria Aweis Mayow, Aytaç Gökmen, Dilek Temiz.
© 2024.
27 pages.
|
|
Ahlem Baccouche, Houssem Bouzgarrou, Meriem Jouirou, Moufida Ben Saada.
© 2024.
21 pages.
|
|
Ashwani Panesar, Rohit Sood.
© 2024.
20 pages.
|
|
Boussairi Slimani, Moufida Ben Saada, Sameh Halaoua.
© 2024.
22 pages.
|
|
|