CEO cultural background and overinvestment decisions: The north-south divide in China

This study addresses an under-researched area in corporate behavior by examining the impact of a CEO's cultural background on corporate overinvestment decisions. We focus on the unique cultural dichotomy between northern and southern China as our context of study. Additionally, we scrutinize th...

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Bibliographic Details
Published in:PloS one 2023-11, Vol.18 (11), p.e0288703-e0288703
Main Authors: Tang, Chia-Hsien, Lee, Yen-Hsien, Huang, Ya-Ling, Chang, Wen-Ting
Format: Article
Language:English
Subjects:
Age
Behavior
Chief executive officers
Companies
Cultural differences
Culture
Decision making
Decisions
Executives
Geography
Hypotheses
Investment strategy
North and South
Ownership
Public enterprise
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Summary:This study addresses an under-researched area in corporate behavior by examining the impact of a CEO's cultural background on corporate overinvestment decisions. We focus on the unique cultural dichotomy between northern and southern China as our context of study. Additionally, we scrutinize the interactions between a CEO's age and the type of company ownership in influencing overinvestment tendencies. Our aim is to enrich theoretical understanding of factors influencing corporate overinvestment, offering practical implications for businesses within and beyond China. By filling this gap in the literature, our study sheds light on the nuanced determinants of overinvestment decisions, aiding businesses in refining their investment strategies and governance mechanisms.
ISSN:1932-6203
1932-6203
DOI:10.1371/journal.pone.0288703