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The impact of national culture on corporate diversification
by Ryan Savitz; Joshua Shackman; Stephen P. Fitzgerald
International Journal of Business and Globalisation (IJBG), Vol. 17, No. 2, 2016

 

Abstract: In this paper, we examine the relationship between national culture and corporate diversification using a sample of 840 firms in 28 countries. The results of our analysis show that the cultural dimensions of power distance, collectivism, and uncertainty avoidance each have a positive and significant impact on corporate diversification. We find no significant impact of cultural masculinity on diversification. Our results provide evidence that cultural aversion to risk may help explain differences in corporate diversification between countries.

Online publication date: Tue, 16-Aug-2016

 

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