Corporate governance, risk aversion and firm value

• Autores: Ron Christian Antonczyk, Astrid Juliane Salzmann
• Localización: Applied financial economics, ISSN 0960-3107, Vol. 24, Nº. 7-9, 2014, págs. 543-556
• Idioma: inglés
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• Resumen

  • This study extends the current state of research on corporate governance and firm value determinants by introducing culture as a proxy for risk aversion. We focus on individuals' risk aversion and connect it to Hofstede's cultural dimensions of uncertainty avoidance. In a cross-country empirical analysis with 47 countries, we find that uncertainty avoidance is negatively associated with valuation of firms. Our findings suggest that cross-country variation in risk aversion as well as in corporate governance impacts firm valuation. The results are robust to controlling for other determinants of firm value and using different datasets.