National culture and the choice between bank debt and public debt

Research output: Journal article publicationJournal articleAcademic researchpeer-review

4 Citations (Scopus)


In this study, we investigate the role of national culture in firms' choice between bank debt and public debt. We postulate that culture influences corporate debt choice through five channels. Using a new international dataset on debt structure and a large sample of firms from 30 countries, we find that Schwartz's cultural dimensions shape firms' debt choice. We show that Egalitarianism has a negative and significant association with bank debt financing and that Embeddedness has a positive and significant association with it. These results hold after conducting several endogeneity and robustness tests. In addition, when using Hofstede's cultural dimensions as alternative cultural dimensions, we find that the results are generally consistent with those obtained with Schwartz's cultural dimensions.

Original languageEnglish
Article number101655
JournalPacific Basin Finance Journal
Publication statusPublished - Dec 2021


  • Bank debt
  • National culture
  • Public debt

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


Dive into the research topics of 'National culture and the choice between bank debt and public debt'. Together they form a unique fingerprint.

Cite this