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Managers' individualistic culture and trade credit

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  • Luo, Yonggen
  • Tian, Na
  • Kong, Dongmin
  • Cui, Huijie

Abstract

Culture is formed as a response to the demands of the environment. We investigate how managers' individualistic culture affects firms' trade credit. Our findings show a positive link between the two. Cross-sectional analyses demonstrate that the positive relation is enhanced in regions with better legal systems but attenuated if the firm has a higher supplier concentration. To address the concern of endogeneity, we adopt an instrumental variable approach. Our findings remain in robustness checks. Overall, this paper takes a deep dive into the chairperson's farming culture in developing countries and reveals how this informal tradition is priced into corporate decisions.

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  • Luo, Yonggen & Tian, Na & Kong, Dongmin & Cui, Huijie, 2025. "Managers' individualistic culture and trade credit," Emerging Markets Review, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:ememar:v:66:y:2025:i:c:s1566014125000275
    DOI: 10.1016/j.ememar.2025.101278
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