search query: @indexterm INTERNATIONAL ECONOMICS / total: 437
reference: 2 / 437
| Author: | Siegel, J.I. Licht, A.N. Schwartz, S.H. |
| Title: | Egalitarianism and international investment |
| Journal: | Journal of Financial Economics
2011 : DEC, VOL 102:3 p. 621-642 |
| Index terms: | culture institutions international economics foreign investment mergers |
| Freeterms: | social institutions |
| Language: | eng |
| Abstract: | This study identifies how country differences on egalitarianism - a key cultural dimension affect international investment flows. A society's cultural orientation toward egalitarianism is expressed by intolerance for abuse of market and political power and an aspiration to protect less powerful actors. We show egalitarianism emerge from exogenous factors including social fractionalization, dominant religion around 1900, and the 19th century war experience. A robust influence of egalitarianism distance is found on cross-national flows of bond and equity issuances, syndicated loans, and mergers and acquisitions. Egalitarianism, largely determined a century or more ago, executes its effect on international investment via a set of consistent contemporary policy choices. However, even after controlling for these associated policy choices, egalitarianism still exercises a direct effect on cross-border investment flows, likely through its influence on managers' daily business conduct. |
SCIMA