A Study on the Impact of Chinese Hierarchical Culture on Chinese Enterprises' Investment Decision

DOI

10.2991/mmetss-16.2017.59How to use a DOI?

Keywords

Hierarchical Culture, Authority, Cash holding, Capital investment.

Abstract

Economic can be seen as the outer form of a nation's development whereas culture is the inner driver of a nation. The culture will shape and affect the person's preferences and ideas. According to the Upper Echelon theory, as the main decision maker, senior executive team's preferences and behavior will affect the decision-making of the enterprise, especially the investment decision. Different from fickle foreign culture, Chinese traditional culture has a long history and has a profound effect on Chinese, especially hierarchy. Chinese executives are authoritative because they are deeply influenced by the concept of hierarchy, which makes them have the say in many occasions. On the other hand, natural cybernetics and thousands of years of farming economy lead Chinese people to national conservatism, their authority extend the preference. This paper through empirical research find that the authority is negatively correlated with the cash holding, but has a complicated influence of capital investment, which influenced by stock option incentive.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Zhiyuan Zhang
PY  - 2017/02
DA  - 2017/02
TI  - A Study on the Impact of Chinese Hierarchical Culture on Chinese Enterprises' Investment Decision
BT  - Proceedings of the 2016 International Conference on Modern Management, Education Technology, and Social Science (MMETSS 2016)
PB  - Atlantis Press
SN  - 2352-5398
UR  - https://doi.org/10.2991/mmetss-16.2017.59
DO  - 10.2991/mmetss-16.2017.59
ID  - Zhang2017/02
ER  -