| Traditional theories discuss various economic behaviors of managers based on the hypothesis of market effectiveness and "rational man",but there are still many unexplainable phenomena.In order to study the capital market more scientifically and objectively,experts and scholars began to add psychology and behavioral science to the study of corporate finance,believing that people are not always rational and that the personal characteristics of a CEO,such as his cultural background,will affect his economic behavior.With a vast territory and a long history of culture,Chinese dialects are the carriers of unique regional cultures.Language is not only a tool for communication,but also a tool for cultural inheritance.Different regional cultures breed different risk preferences of businessmen,which are reflected in their investment behaviors.Keep up with current research focus.This paper empirically tests that influence of the affiliated dialect area of cultural differences with investment in the enterprise,based on the hypothesis of Sapir-Wolf and the specific regional culture represented by the different dialects,using the data from the collected executives birthplace in combination with "Chinese dialect dictionary" and "Chinese geographical atlas",identifying the types of dialect,using CEO's dialect area as the proxy variable of regional culture,with the sample of A-share listed companies in China from 2010 to 2017.The results show that the culture of different dialects has different influence on the CEO's investment behavior.In general,the CEO investment behaviors of Wu dialect area,Yue dialect area and Min dialect area with a preference for risky behaviors were more aggressive,while the CEO investment behaviors of Jin dialect area with a preference for conservative behaviors were more cautious.When it comes to various aspects of investment behaviors,CEOs of Wu dialect,Yue dialect and Min dialect who prefer risk behaviors tend to expand the scale of investment and inhibit the level of non-investment efficiency.Among them,the CEO from Wu dialect area focuses on long-term equity investment,while the CEO from Min dialect area focuses on fixed asset investment.The CEOs of Jin dialect who prefer conservative behaviors tend to reduce the scale of investment,which will promote the level of inefficient investment and focus on reducing the scale of fixed assets.In addition,considering the macro-economy where the company is located,other personal characteristics of the CEO and corporate governance factors may have an impact on their investment behavior,it is verified in turn.In the aspect of macro-economy,the local GDP of the place where the enterprise is located,the revenue within the local fiscal budget,the expenditure within the local fiscal budget,the degree of marketization,and whether the provincial capital city is the capital city are selected as the control variables.In the aspect of CEO personal characteristics,gender,age,tenure and education background were selected as control variables.In terms of corporate governance,the control variables include whether the CEO is also the chairman of the board of directors,the size of the board of directors,the shareholding ratio of the largest shareholder,the state-owned ratio,the ratio of outstanding shares,the average age of directors,supervisors and senior managers,and the gender ratio of directors,supervisors and senior managers.After testing,the regression results were still consistent with the previous results.This paper is the enrichment and supplement of the micro research of “culture and corporate finance”,and provides a new analytical perspective for the alienation of investment. |
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