Tạp chí Khoa học Đại học Mở Thành phố Hồ Chí Minh - Kinh tế và Quản trị kinh doanh (Feb 2021)

The national culture of chief executive director (CEO) and bank-risk taking: Evidence in developing countries

  • Lương Duy Quang

DOI
https://doi.org/10.46223/HCMCOUJS.econ.vi.16.1.1385.2021
Journal volume & issue
Vol. 16, no. 1
pp. 79 – 93

Abstract

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National culture is attracting the attention of scholars, particularly in thefinancial field, as many recent studies have confirmed the critical role of culture in the stability of the banking system. In this paper, we investigate the link between CEO’s national cultural values and bank risk-taking. Using an unbalanced panel dataset which contains national cultural values of 395 CEOs who work for 237 commercial banks in 21 countries over the period 2011-2017, we find that bank risk-taking is negatively associated with CEOs who score high in the individualistic cultural dimension. Also, we see that bank risk tends to increase under the management of high power distance CEOs.

Keywords