National culture and the value implication of corporate governance

Dale Griffin, Omrane Guedhami, Kai Li, Chuck C.Y. Kwok, Liang SHAO

    Research output: Contribution to journalReview articlepeer-review

    7 Citations (Scopus)


    We examine why corporate governance varies widely across countries and across firms, and why such variation matters. Using a proprietary database from Governance Metrics International on corporate governance practices across a large number of countries and firms for 2006–2011 and employing a hierarchical linear model specification, we find that the national cultural dimension of individualism is positively associated, whereas the national cultural dimension of uncertainty avoidance is negatively associated, with firm-level corporate governance scores. Within countries, there is a positive association between firm-level corporate governance scores and firm value; however, across countries, the association is negative or zero.

    Original languageEnglish
    Pages (from-to)333-372
    Number of pages40
    JournalJournal of Law, Finance, and Accounting
    Issue number2
    Publication statusPublished - 2018

    Scopus Subject Areas

    • Law
    • Finance
    • Accounting

    User-Defined Keywords

    • Corporate governance
    • Firm value
    • Hierarchical linear model
    • Individualism
    • National culture
    • Uncertainty avoidance


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