Đang chuẩn bị liên kết để tải về tài liệu:
Chinese alcohol culture and corporate rent-seeking behavior

Culture plays an important role in affecting corporate behaviors when formal institutions fall short. Using China's A-share listed companies as a sample, we analyze the impact of Chinese alcohol culture on corporate rent-seeking behavior. We find that firms in regions in which alcohol plays a more prominent role show more rent-seeking expense. The results are still robust when we use the regional gender ratio and temperature as instruments. It is further found that a high level of alcohol culture in CEOs’ home region significantly enhances rent-seeking expense. Moreover, the promoting effect of alcohol culture on corporate rent-seeking is significantly reduced in the state-owned firms or under the improvements in formal institutions. As for influence mechanism, we find that the alcohol culture can promote the tendency of executives and officials to engage in corruption. This paper provides micro evidence for the impact of culture on the real economy. | Journal of Applied Finance Banking vol. 9 no. 5 2019 27-57 ISSN 1792-6580 print version 1792-6599 online Chinese Alcohol Culture and Corporate Rent-seeking Behavior Zhiwei Fang1 and Xiao Jin1 Abstract Culture plays an important role in affecting corporate behaviors when formal institutions fall short. Using China s A-share listed companies as a sample we analyze the impact of Chinese alcohol culture on corporate rent-seeking behavior. We find that firms in regions in which alcohol plays a more prominent role show more rent-seeking expense. The results are still robust when we use the regional gender ratio and temperature as instruments. It is further found that a high level of alcohol culture in CEOs home region significantly enhances rent-seeking expense. Moreover the promoting effect of alcohol culture on corporate rent-seeking is significantly reduced in the state-owned firms or under the improvements in formal institutions. As for influence mechanism we find that the alcohol culture can promote the tendency of executives and officials to engage in corruption. This paper provides micro evidence for the impact of culture on the real economy. JEL classification numbers G32 G38 Keywords Culture Rent-seeking Alcohol Corruption 1 Introduction Numerous evidence shows that culture plays an important role in shaping our modern economy and the financial markets. Since Hofstede 1980 pioneered the concept of cultural dimension many financial scholars began to incorporate 1 PBC School of Finance Tsinghua University Beijing 100083 China Article Info Received April 10 2019. Revised April 28 2019 Published online June 10 2019 28 Zhiwei Fang and Xiao Jin culture as a non-institutional factor into the research model. At the micro level culture can act on the corporate decision-making in such as capital structure cash holding and dividend policy Chui et al. 2002 Chang and Noorbakhsh 2009 Fidrmuc and Jacob 2010 . At the macro level culture also has an important impact on regional