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

1 Citation (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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