National culture and corporate risk-taking around the world

B Frijns*, F Hubers, D Kim, TY Roh, YH Xu

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review


This paper examines the effect of national culture on corporate risk-taking worldwide. Specifically, we focus on one particular cultural trait – Individualism – a culture dimension linked to risk-taking and overconfidence. Using a sample of 48 countries from 1998 to 2019 (a total of 111,697 firm-year observations), we document a positive relationship between Individualism and corporate risk-taking. This result is robust to potential endogeneity concerns, alternative default horizons, an alternative measure for corporate risk-taking, and alternative measures of Individualism.
Original languageEnglish
Article number100710
Number of pages11
JournalGlobal Finance Journal
Issue numberMay 2022
Publication statusPublished - May 2022


  • Corporate risk-taking
  • Individualism
  • National culture


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