New evidence on national culture and bank capital structure

Mamiza Haq, Daniel Hu, Robert Faff, Shams Pathan

Research output: Contribution to journalArticlepeer-review

43 Citations (Scopus)


We examine the nature of impact of national culture on bank leverage using a broad sample of 1701 banks from 79 countries, over the period 2000–2013, i.e., 18,996 bank-year observations. We find that banks in countries with high individualism culture dimensions hold more leverage while, banks in countries with high uncertainty-avoidance, power distance, and long-term orientation have less leverage. Notably, bank size substantially moderates these cultural effects. Our findings are robust to endogeneity, and alternative proxies for the dependent and core explanatory variables.
Original languageEnglish
Pages (from-to)41-64
Number of pages24
JournalPacific Basin Finance Journal
Early online date15 Aug 2018
Publication statusPublished - 1 Sep 2018
Externally publishedYes


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