Author : Zhimin Wang
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (137 download)
Book Synopsis Any Consistency in National Culture's Influence on Firms' Performance in Bad Times? Evidence from the Covid-19 Crisis and GFC. by : Zhimin Wang
Download or read book Any Consistency in National Culture's Influence on Firms' Performance in Bad Times? Evidence from the Covid-19 Crisis and GFC. written by Zhimin Wang and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The COVID-19 economic crisis in 2020 (COVID-19 crisis) and 2007-2009 global financial crisis (GFC) were both worldwide and posed significant challenges for firms. In this study, using Hofstede's cultural dimension framework to analyze the cross-country, firm-level data for thousands of firms from 55 countries, we show that national culture plays a consistent role for firms in the COVID-19 crisis and GFC: Firms from countries possessing the cultural attributes of long-term orientation, strong uncertainty avoidance, or low individualism are less affected by the crises on downside risk and profitability than their counterparts. We also find that firm size mitigates these effects. Further analysis reveals that small firms have consistent results with the main analyses, but large firms do not. We also conduct subsample analyses by economy development level and industry. The results show that national culture's relationship with firms' downside risk and profitability during crises are more consistent for advanced economies and firms in the manufacturing industry. We conclude that national culture plays an important role in the ability of firms to prosper in the midst of recent major economic downturns.