IDEAS home Printed from https://ideas.repec.org/h/spr/prbchp/978-3-032-20143-0_7.html

Do National Cultures Moderate the Relationship Between Corporate Governance Mechanisms and Financial Performance?

Author

Listed:
  • Camelia Iuliana Lungu

    (Bucharest University of Economic Studies, Department of Accounting and Audit)

  • Andreea Madalina Bojan

    (Bucharest University of Economic Studies, Doctoral School of Accounting)

Abstract

The aim of this research is to contribute to the understanding of how national culture’s dimensions associated with agency theory, transparency, and information asymmetry moderate the impact of various corporate governance mechanisms on company’s financial performance. A mixed dataset collected at company and country level is statistically analysed. Multilevel robust regressions with random intercept modelling, controlling for year, industry, and country fixed effects are used to validate the research hypotheses. The moderating effect of Hofstede’s culture’s dimensions related to agency and stakeholders’ theories are interconnected with legitimacy theory. The analysed period is 2020–2022, a time of multiple constraints generated by the pandemic crisis, that may act as a stress factor with impact on managers’ financial decisions. Results suggest that the impact of various corporate governance mechanisms on financial performance may depend on the national culture’s characteristics. Specifically, the relationship is found stronger in countries with a higher power distance, oriented towards individualism, and low uncertainty avoidance. These results have important academic and business implications. Academics may identify gaps to be addressed in their future research, while managers may adjust their decisions-making scenarios when dealing with heterogeneous stakeholders’ demands across countries.

Suggested Citation

  • Camelia Iuliana Lungu & Andreea Madalina Bojan, 2026. "Do National Cultures Moderate the Relationship Between Corporate Governance Mechanisms and Financial Performance?," Springer Proceedings in Business and Economics,, Springer.
    • Handle: RePEc:spr:prbchp:978-3-032-20143-0_7
    DOI: 10.1007/978-3-032-20143-0_7
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:prbchp:978-3-032-20143-0_7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.