Cultural adaptation and corporate investment decisions: evidence from inter-regional investments
ABSTRACTCorporate inter-regional investment is an important channel for building the domestic economic cycle. This paper explores the impact of firms’ adaptation to regional culture on inter-regional investment based on the sample of newly-established inter-province subsidiaries of A-share listed fi...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2023-07-01
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| Series: | China Journal of Accounting Studies |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/21697213.2023.2239668 |
| _version_ | 1797372561999265792 |
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| author | Dan Li Tusheng Xiao Chun Yuan |
| author_facet | Dan Li Tusheng Xiao Chun Yuan |
| author_sort | Dan Li |
| collection | DOAJ |
| description | ABSTRACTCorporate inter-regional investment is an important channel for building the domestic economic cycle. This paper explores the impact of firms’ adaptation to regional culture on inter-regional investment based on the sample of newly-established inter-province subsidiaries of A-share listed firms in China from 2006 to 2017. We find that (1) Firms’ low cultural adaptation to home region promote corporate inter-regional investment. (2) Firms are more likely to invest in regions with cultural environments that are more compatible with their own culture value (3) Firms have better investment performance when investing in more culturally adapted regions through better cooperating with new stakeholders and reducing management cost. (4) The impact of cultural adaptation on inter-regional investments is also affected by the state ownership and corresponding regional formal institutions. Our findings have implications for firms to make location choice during inter-regional investment and can help governments attract capital flows. |
| first_indexed | 2024-03-08T18:36:31Z |
| format | Article |
| id | doaj.art-1656b6b4776a4018a2a6d6b92d238763 |
| institution | Directory Open Access Journal |
| issn | 2169-7213 2169-7221 |
| language | English |
| last_indexed | 2024-03-08T18:36:31Z |
| publishDate | 2023-07-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | China Journal of Accounting Studies |
| spelling | doaj.art-1656b6b4776a4018a2a6d6b92d2387632023-12-29T11:10:16ZengTaylor & Francis GroupChina Journal of Accounting Studies2169-72132169-72212023-07-0111363165910.1080/21697213.2023.2239668Cultural adaptation and corporate investment decisions: evidence from inter-regional investmentsDan Li0Tusheng Xiao1Chun Yuan2School of Economics and Management, University of Science and Technology Beijing, Beijing, ChinaSchool of Accountancy, Central University of Finance and Economics, Beijing, ChinaSchool of Accountancy, Central University of Finance and Economics, Beijing, ChinaABSTRACTCorporate inter-regional investment is an important channel for building the domestic economic cycle. This paper explores the impact of firms’ adaptation to regional culture on inter-regional investment based on the sample of newly-established inter-province subsidiaries of A-share listed firms in China from 2006 to 2017. We find that (1) Firms’ low cultural adaptation to home region promote corporate inter-regional investment. (2) Firms are more likely to invest in regions with cultural environments that are more compatible with their own culture value (3) Firms have better investment performance when investing in more culturally adapted regions through better cooperating with new stakeholders and reducing management cost. (4) The impact of cultural adaptation on inter-regional investments is also affected by the state ownership and corresponding regional formal institutions. Our findings have implications for firms to make location choice during inter-regional investment and can help governments attract capital flows.https://www.tandfonline.com/doi/10.1080/21697213.2023.2239668Cultural adaptationinter-regional investmentopportunisminter-regional development |
| spellingShingle | Dan Li Tusheng Xiao Chun Yuan Cultural adaptation and corporate investment decisions: evidence from inter-regional investments China Journal of Accounting Studies Cultural adaptation inter-regional investment opportunism inter-regional development |
| title | Cultural adaptation and corporate investment decisions: evidence from inter-regional investments |
| title_full | Cultural adaptation and corporate investment decisions: evidence from inter-regional investments |
| title_fullStr | Cultural adaptation and corporate investment decisions: evidence from inter-regional investments |
| title_full_unstemmed | Cultural adaptation and corporate investment decisions: evidence from inter-regional investments |
| title_short | Cultural adaptation and corporate investment decisions: evidence from inter-regional investments |
| title_sort | cultural adaptation and corporate investment decisions evidence from inter regional investments |
| topic | Cultural adaptation inter-regional investment opportunism inter-regional development |
| url | https://www.tandfonline.com/doi/10.1080/21697213.2023.2239668 |
| work_keys_str_mv | AT danli culturaladaptationandcorporateinvestmentdecisionsevidencefrominterregionalinvestments AT tushengxiao culturaladaptationandcorporateinvestmentdecisionsevidencefrominterregionalinvestments AT chunyuan culturaladaptationandcorporateinvestmentdecisionsevidencefrominterregionalinvestments |