@article{632fe0d3cacd445fa07832ea6e082b10,
title = "National culture and the choice between bank debt and public debt",
abstract = "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.",
keywords = "Bank debt, National culture, Public debt",
author = "Chui, {Andy C.W.} and Xiao Li and Walid Saffar",
note = "Funding Information: Xiao Li acknowledges the financial support of the National National Natural Science Foundation of China (#71802205).☆ We warmly thank Kee-Hong Bae, Sabri Boubaker, C.S. Agnes Cheng, Ferdinand Gul, Jeong Bon Kim, Chuck Kwok, Karen Lai, Kai Li, Jeffrey Ng, Yiming Qian, Samir Saadi, and all seminar participants at The Hong Kong Polytechnic University, Deakin University, and the Central University of Finance and Economics for their useful comments on previous versions of this study. Xiao Li acknowledges the financial support of the National Natural Science Foundation of China (#71802205). All remaining errors are our own. Funding Information: Xiao Li acknowledges the financial support of the National National Natural Science Foundation of China (# 71802205 ). Funding Information: We warmly thank Kee-Hong Bae, Sabri Boubaker, C.S. Agnes Cheng, Ferdinand Gul, Jeong Bon Kim, Chuck Kwok, Karen Lai, Kai Li, Jeffrey Ng, Yiming Qian, Samir Saadi, and all seminar participants at The Hong Kong Polytechnic University, Deakin University, and the Central University of Finance and Economics for their useful comments on previous versions of this study. Xiao Li acknowledges the financial support of the National Natural Science Foundation of China (#71802205). All remaining errors are our own. Publisher Copyright: {\textcopyright} 2021 Elsevier B.V.",
year = "2021",
month = dec,
doi = "10.1016/j.pacfin.2021.101655",
language = "English",
volume = "70",
journal = "Pacific Basin Finance Journal",
issn = "0927-538X",
publisher = "Elsevier B.V.",
}