RT Article
T1 Individualism–Collectivism, Private Benefits of Control, and Earnings Management: A Cross-Culture Comparison
JF Journal of business ethics
VO 114
IS 4
SP 655
OP 664
A1 Zhang, Xu
A1 Liang, Xing
A1 Sun, Hongyan
A2 Liang, Xing
A2 Sun, Hongyan
LA English
YR 2013
UL https://ixtheo.de/Record/1785647784
AB Using private benefits of control and earnings management data from 41 countries and regions, we provide strong evidence that cultures, together with legal rules and law enforcement, play a critical role in shaping corporate behavior. More specifically, we find that private benefits of control are larger and earnings management is more severe in collectivist as opposed to individualist cultures, consistent with the argument that agency problems between corporate insiders and outside investors are severe in collectivist culture. These results are robust to the inclusion of controls for country wealth, economic heterogeneity across countries, and international differences in ownership concentration.
K1 Moral Behavior
K1 Corporate Governance
K1 Earnings management
K1 Private benefits of control
K1 Collectivism
K1 Individualism
DO 10.1007/s10551-013-1711-5