National culture influences firms' debt choice, impacting global financial strategies.
National culture influences whether companies choose to borrow money from banks or through public debt. The study looked at data from firms in 30 countries and found that cultural dimensions like Egalitarianism and Embeddedness affect this choice. Specifically, Egalitarianism is linked to less bank debt, while Embeddedness is linked to more bank debt. These results were consistent even when using different cultural dimensions.