Research On The Impact Of Different Dimensions Of National Culture On Enterprise Bankruptcy Risk

In the context of global economic integration,cultural construction and development have become an important part of economic and social development.According to the relevant research conducted by PricewaterhouseCoopers and the Economist Intelligence Unit,since the global economic crisis in 2008,international financial practitioners have gradually taken "culture" as the main driver of "enterprise risk".In recent years,exploring the relationship between culture and corporate risk has become a hot topic of widespread academic attention.Existing literature has clarified the significant impact of national culture on corporate bankruptcy risk based on national culture dimension models at the international level,but there is relatively little research on heterogeneity,transmission mechanisms,and other aspects.In view of this,this article delves into how national culture affects corporate bankruptcy risk and further explores the impact of Chinese cultural output,which has significance.Therefore,this article uses manufacturing enterprise data from 35 countries from 2010 to 2020 as the research sample.Firstly,the national culture dimension variable is used as a measure of national culture,and a panel econometric model is established to explore how national culture affects corporate bankruptcy risk;Secondly,the heterogeneity of the conditions under which national culture affects corporate bankruptcy risk is studied from the perspectives of language lineage and geographical characteristics,and the mechanism of the impact of national culture on corporate bankruptcy risk is explored from the formal institutional level;Finally,the variable of cultural distance between China and foreign countries was used to measure the external output of Chinese culture,further exploring the impact of Chinese cultural output on corporate bankruptcy risk.The results show that:(1)In the international perspective,the baseline regression results show that:The power distance,individual/collectivism and uncertainty avoidance dimensions of national culture improve the risk of firm bankruptcy,while the male/female dimension of national culture reduces the risk of firm bankruptcy.Moreover,this conclusion is still valid after a series of robustness tests such as replacing the explained variables and changing the sample time range.Heterogeneity analysis results show that national culture has a significant impact on corporate bankruptcy risk in developing countries,non-Indo-European countries and Asian countries,but not on developed countries,Indo-European countries and non-Asian countries as a whole.The research results using formal institutional index as the transmission mechanism show that legal and other formal institutional elements promote the influence of power distance on firm bankruptcy risk,while inhibit the influence of individual/collectivism,uncertainty avoidance and male/female degree on firm bankruptcy risk.(2)Focusing on China’s cultural export,on the one hand,the benchmark regression analysis based on the cultural distance theory makes it clear that China’s cultural export to the outside world will reduce the bankruptcy risk of enterprises in other countries,and this conclusion is still valid after a series of robustness tests such as replacing the explained variables and changing the sample time range.On the other hand,the heterogeneity analysis results show that China’s cultural export can reduce the bankruptcy risk of enterprises in the Belt and Road countries,and the impact effect is higher than the average impact of China on global enterprises.On the one hand,the research conclusion clarifies the influence of different cultural dimensions on the bankruptcy risk of enterprises in a country,and provides empirical evidence for countries in the world to reduce the risk of enterprise bankruptcy by adjusting cultural tendency.On the other hand,it affirms the positive influence of Chinese culture export on global enterprises,verifies the effectiveness of relevant policies of the Belt and Road Initiative and the superiority of Chinese culture from a cultural perspective,and helps China to further build cultural confidence and promote cultural self-improvement.