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Collectivism and Connected Lending

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  • Siwapong Dheera-aumpon

Abstract

National culture may affect the prevalence of connected lending. This study aimed to assess the effects of national culture, especially collectivism, on the need for special connections with banks, which is a measure of connected lending. The researcher obtained national culture data from both Hofstede's work and the GLOBE project. Using data covering more than 5000 firms in 51 countries, this study found that GLOBE Institutional Collectivism decreases the need for special connections, while Hofstede Collectivism and GLOBE In-Group Collectivism do not. This suggests that the need for special connections with banks is different from the corruption of bank officials.

Suggested Citation

  • Siwapong Dheera-aumpon, 2017. "Collectivism and Connected Lending," PIER Discussion Papers 57, Puey Ungphakorn Institute for Economic Research.
    • Handle: RePEc:pui:dpaper:57
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    Cited by:

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    2. Kowalewski, Oskar, 2023. "Effect of operating multiple affiliates on the performance of subsidiaries in the same host country," Research in International Business and Finance, Elsevier, vol. 65(C).
    3. Bahoo, Salman, 2020. "Corruption in banks: A bibliometric review and agenda," Finance Research Letters, Elsevier, vol. 35(C).
    4. Hasan, Iftekhar & Jackowicz, Krzysztof & Kowalewski, Oskar & Kozłowski, Łukasz, 2023. "Cultural values of parent bank board members and lending by foreign subsidiaries: The moderating role of personal traits," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 83(C).
    5. Jackowicz, Krzysztof & Kowalewski, Oskar & Kozłowski, Łukasz, 2022. "Foreign bank lending: The role of home country culture during prosperous and crisis periods," Journal of Multinational Financial Management, Elsevier, vol. 66(C).
    6. Dombi, Ákos & Grigoriadis, Theocharis N. & Zhu, Junbing, 2024. "Antiquity, capitalism & development: The finance-growth perspective," Emerging Markets Review, Elsevier, vol. 59(C).

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    More about this item

    Keywords

    National Culture; Banking and Finance; Institutional Environment; Collectivism; Firm Financing;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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