{"title":"Confucian culture and cost stickiness","authors":"Ailing Pan, Hui Wang, Lei Xu","doi":"10.1111/acfi.13247","DOIUrl":null,"url":null,"abstract":"Cultural features may exert significant impact on firm behaviour. Through a sample of listed A‐share firms on the Shanghai and Shenzhen Stock Exchanges, we find that Confucian culture may significantly lower firms' cost stickiness. Our mechanism tests suggest that ideologies of self‐discipline and prudence embedded in Confucian culture may mitigate agency issues as well as overestimation of firm earnings. Furthermore, such impact is more pronounced among firms of lower shareholding by institutional investors or of weak internal control, which suggests that Confucian culture may help rectify the imperfection of corporate governance. Lower cost stickiness may also reduce firm risk.","PeriodicalId":335953,"journal":{"name":"Accounting & Finance","volume":"18 6","pages":""},"PeriodicalIF":0.0000,"publicationDate":"2024-03-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Accounting & Finance","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1111/acfi.13247","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0
Abstract
Cultural features may exert significant impact on firm behaviour. Through a sample of listed A‐share firms on the Shanghai and Shenzhen Stock Exchanges, we find that Confucian culture may significantly lower firms' cost stickiness. Our mechanism tests suggest that ideologies of self‐discipline and prudence embedded in Confucian culture may mitigate agency issues as well as overestimation of firm earnings. Furthermore, such impact is more pronounced among firms of lower shareholding by institutional investors or of weak internal control, which suggests that Confucian culture may help rectify the imperfection of corporate governance. Lower cost stickiness may also reduce firm risk.
文化特征可能对企业行为产生重大影响。通过对沪深证券交易所 A 股上市公司的抽样调查,我们发现儒家文化可能会显著降低企业的成本粘性。我们的机制检验表明,儒家文化中蕴含的自律和谨慎的意识形态可能会缓解代理问题以及对公司收益的高估。此外,这种影响在机构投资者持股比例较低或内部控制薄弱的公司中更为明显,这表明儒家文化可能有助于纠正公司治理的不完善。较低的成本粘性也可能降低公司风险。