Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/310868 
Year of Publication: 
2023
Citation: 
[Journal:] Journal of Accounting and Management Information Systems (JAMIS) [ISSN:] 2559-6004 [Volume:] 22 [Issue:] 3 [Year:] 2023 [Pages:] 464-489
Publisher: 
Bucharest University of Economic Studies, Bucharest
Abstract: 
Research Question- Why the banking sector in some countries experienced more severe panic than the banking sector in other countries? And why some countries recovered faster than others? Motivation- In a response to the global financial crisis, research on the motivation risk-taking or risk-aversion has been increasingly grown to investigate whether culture differences among countries affect the behaviors of individuals inside societies to be risk-taking or risk-aversion? Idea- Test the effect of the four cultural dimensions of Hofstede (2001) i.e. (individualism, uncertainty avoidance, power distance and masculinity) on risk-taking in the banking sector. Data- Our sample consists of 2620 bank-year observations of 262 banks from four countries covering the period from (2011 to 2020) collected from Refinitiv Eikon database. Tools- The statistical techniques used are descriptive analysis, correlation and OLS regression. Findings- We found the effect of national culture on risk-taking is significant for all dimensions. Individualism and masculinity are negatively related to risk-taking and uncertainty avoidance is positively related to risk-taking. For power distance dimension, we found power distance of Hofstede (2001) is significantly and negatively related to risk-taking, while power distance of House et al. (2004) is significantly and positively related to risk-taking. We confirmed our findings with robustness test. Contribution- Our results confirmed the "cushion hypothesis" formulated by Hsee & Weber (1999). We provide evidence on the significant effect of masculinity, long-term orientation and indulgence on bank risk-taking where most previous studies either excluded or found them insignificant. The impact of all cultural dimensions has been confirmed using a small sample of countries.
Subjects: 
risk taking
individualism
uncertainty avoidance
power distance
masculinity
cushion hypothesis
JEL: 
M41
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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