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A Peer-reviewed scientific articles/A1 Journal article (refereed), original research
      
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Secrecy, information shocks, and corporate investment : Evidence from European Union countries, Journal of International Financial Markets, Institutions and Money May (2017). Mazboudi, Mohamad; Hasan, Iftekhar


Category A Peer-reviewed scientific articles
Sub-category A1 Journal article (refereed), original research
auki Internal authors
All authors as text Mazboudi, Mohamad; Hasan, Iftekhar 
Number of authors
Status Published
Year of publication 2018 
Date 27.11.2017 
Name of article Secrecy, information shocks, and corporate investment : Evidence from European Union countries 
Name of journal Journal of International Financial Markets, Institutions and Money
Volume of issue 54 
Number of issue May 
Pages 166-176 
Abstract This study examines how national culture affects corporate investment. We argue that national culture affects corporate investment efficiency through the level of secrecy that national culture exhibits. Using a sample of firms from eight culturally-diverse European Union countries, we find that the level of secrecy that national culture exhibits is negatively related to corporate investment efficiency after controlling for a number of firm- and country-level factors. We also find that the negative relation between national culture and corporate investment efficiency is mitigated by an exogenous shock to the information asymmetry problem between managers and investors. Our study highlights the importance of the cultural value of secrecy/transparency as a determinant of investment efficiency at the firm-level.
Free text descriptor in Finnish yritykset; investoinnit; tehokkuus; EU-maat; informaatio; avoimuus; kulttuuri 
Free text descriptor in English Culture; Secrecy; Investment efficiency; Information asymmetry; Information environment 
JEL-codes D82; G31; M41 
ISSN / e-ISSN 1042-4431 
auki Internet addresses
Additional information Available online first 27.11.2017
Notes BoF DP 19/2017 


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