The relationship between of Culture Elements and the Valuation of Cash Holdings

Subject Areas : Journal of Cultural Management

gh داداش زاده ¹ (دانشجوی دکترای تخصصی، گروه حسابداری، دانشگاه آزاد اسلامی، مرند، ایران (مسئول مکاتبات) [e-mail])
Rezvan Hejazi ² (Professor Accounting Department, Khatam University, Tehran, Iran)

Received: 2018-06-12 Accepted : 2018-07-06 Published : 2019-04-21

Keywords: Uncertainty Avoidance, Individualism, The valuation of Cash Holdings,

Abstract :

The most important factor in the economic health of these units is the balance between available cash and cash needs. Although the effects of national culture on financial decision-making are reflected in the development of financial markets throughout the world, but nevertheless to justify the behavior of keeping cash by companies, culture is an issue of great importance. Accordingly, in this research, has been investigated the relationship between cultural elements and evaluation of cash holdings. For this purpose, the Hofstede Cultural Components Questionnaire (1980) has gathered information on the cultural Exchange companies. Following the research by Orlova, et al (2017), were used to measure cultural elements two dimensions of individualism and uncertainty avoidance and the valuation of cash holdings has been used by Faulkender and Wang (2006) modified by Pinkowitz et al (2006). The purpose of this study is applied and is essentially descriptive-survey. The results of the research show that there is no correlation between cultural elements and the evaluation of cash holdings and this relationship was not even confirmed by the inclusion of economic indicators and financial development. Also, the relationship between cultural elements and the valuation of cash holdings is not different in companies of a larger size than smaller.