E-resources
Peer reviewed
Open access
-
Lindner, Thomas; Puck, Jonas; Stocco, Giulia
International business review, June 2023, 2023-06-00, Volume: 32, Issue: 3Journal Article
This study investigates how asymmetric risk preferences and national institutions co-determine how firms are financed across countries. We include prospect theory into the discussion of uncertainty avoidance and the institutional envelope in IB, and argue that country-specific bias in the evaluation of downside risks and upside potentials explain variation in how otherwise similar firms raise funds. Exploiting a unique dataset on risk preferences, we show that risk perception in general, and asymmetric risk preferences as predicted by prospect theory in particular, affect corporate capital structure. We also show that the national institutional envelope constrains these effects and discuss implications for international business research beyond capital structure. We test our predictions on a panel of 10,355 firm-year observations. •Asymmetric risk preferences drive capital structure differences across countries.•Prospect theory helps explain cross-national variation in capital structure.•The institutional envelope constrains how risk preferences influence capital structure.
![loading ... loading ...](themes/default/img/ajax-loading.gif)
Shelf entry
Permalink
- URL:
Impact factor
Access to the JCR database is permitted only to users from Slovenia. Your current IP address is not on the list of IP addresses with access permission, and authentication with the relevant AAI accout is required.
Year | Impact factor | Edition | Category | Classification | ||||
---|---|---|---|---|---|---|---|---|
JCR | SNIP | JCR | SNIP | JCR | SNIP | JCR | SNIP |
Select the library membership card:
If the library membership card is not in the list,
add a new one.
DRS, in which the journal is indexed
Database name | Field | Year |
---|
Links to authors' personal bibliographies | Links to information on researchers in the SICRIS system |
---|
Source: Personal bibliographies
and: SICRIS
The material is available in full text. If you wish to order the material anyway, click the Continue button.