CEO power, bank risk-taking and national culture: International evidence

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Main author: Pour, Eilnaz Kashefi
Other authors: Uddin, Moshfique
Murinde, Victor
Amini, Shima
Format: Journal Article           
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id eprints-39670
recordtype eprints
institution SOAS, University of London
collection SOAS Research Online
language English
language_search English
description Using unique hand-collected data for 336 large banks across 48 countries, together with values of national culture, our empirical analysis uncovers three new robust findings. First, variations of bank risk-taking across national culture and CEO power are more pronounced when cultural values and CEO power indicators are high. Second, while the individualism dimension of national culture has a moderating influence, the uncertainty avoidance dimension has a reinforcing effect, on the relationship between CEO power and bank risk-taking. In more detail, the results for the average marginal effect of CEO power on risk for different cultural values show that CEO power has a negative (positive) or insignificant impact on bank risk-taking when the value of individualism (uncertainty avoidance) is low; however, the impact becomes positive (negative) and statistically significant as the value of individualism (uncertainty avoidance) increases. Third, intra-cultural diversity matters: ‘tight’ cultures (e.g., strong social norms) are more pronounced than ‘loose’ cultures (e.g., heterogeneous values) in influencing bank risk.
format Journal Article
author Pour, Eilnaz Kashefi
author_facet Pour, Eilnaz Kashefi
Uddin, Moshfique
Murinde, Victor
Amini, Shima
authorStr Pour, Eilnaz Kashefi
author_letter Pour, Eilnaz Kashefi
author2 Uddin, Moshfique
Murinde, Victor
Amini, Shima
author2Str Uddin, Moshfique
Murinde, Victor
Amini, Shima
title CEO power, bank risk-taking and national culture: International evidence
publisher Elsevier
publishDate 2023
url https://eprints.soas.ac.uk/39670/

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