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Culture and Corporate Governance: The Influence of Language and Religion in Switzerland

Volonté, Christophe

In: Management International Review, 2015, vol. 55, no. 1, p. 77-118

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    Titel
    • Culture and Corporate Governance: The Influence of Language and Religion in Switzerland
    Autor
    • Volonté, Christophe. Faculty of Business and Economics, University of Basel, Basel, Switzerland
    Dokumententyp
    • Postprint
    Sprache
    • Englisch
    Veröffentlicht in
    • Management International Review, 2015, vol. 55, no. 1, p. 77-118. Springer Berlin Heidelberg
    Andere elektronische Ausgabe
    OAI-PMH-ID
    • oai:doc.rero.ch:332114
    Summary
    We investigate the effect of culture on corporate governance using the extraordinary opportunity that the corporate landscape of Switzerland provides. Within a single institutional framework (e.g., Swiss federal corporate law), we use language (German and French) and religion (Roman Catholicism and Protestantism) as proxies for culture. These groups share a distinct set of values particularly in their tolerance for hierarchical structures. We observe that firms in Swiss-French areas and firms in Roman Catholic cantons are more likely to have one-tier boards, whereas two-tier boards are more prevalent in Swiss-German areas and Protestant cantons. Furthermore, board composition is significantly driven by language. In contrast, ownership and equity structure are not significantly related to culture.