Do north–south cultural differences affect share repurchases?—Evidence from China

IF 6.9 2区经济学 Q1 BUSINESS, FINANCE

Research in International Business and Finance Pub Date : 2025-08-01 DOI:10.1016/j.ribaf.2025.103113

Chenghao Huang, Li Zhang, Wenqi Liu

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引用次数: 0

Abstract

This paper investigates how collectivism, reflected in the north–south differences in China’s farming culture, affects share repurchase decisions. Our findings indicate that the chairman’s collectivism significantly promotes share repurchase activity, primarily by mitigating information asymmetry and boosting investor confidence. Additionally, repurchase announcements from southern chairman yield higher announcement returns, and these chairmen increased repurchases during the COVID-19 pandemic. Moreover, north–south differences are more pronounced among non-founder chairman and those with lower shareholdings, indicating that collectivism effectively complements entrepreneurial experience and incentives. Furthermore, collectivism increases cash dividends, with no substitution effect between share repurchases and cash dividends. In conclusion, a chairman’s personal characteristics are crucial in repurchase decisions, with collectivism increasing the likelihood of listed companies using share repurchases to protect common interests.

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南北文化差异会影响股票回购吗？——来自中国的证据

本文考察了体现在中国农业文化南北差异中的集体主义是如何影响股票回购决策的。我们的研究结果表明，董事长的集体主义显著促进了股票回购活动，主要是通过缓解信息不对称和提高投资者信心来实现的。此外，南方董事长的回购公告收益率更高，这些董事长在新冠疫情期间增加了回购。此外，南北差异在非创始人董事长和持股较少的人之间更为明显，表明集体主义有效地补充了创业经验和激励。此外，集体主义增加了现金股利，股票回购与现金股利之间不存在替代效应。综上所述，董事长的个人特征对回购决策至关重要，集体主义增加了上市公司利用股票回购来保护共同利益的可能性。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Research in International Business and Finance BUSINESS, FINANCE-

CiteScore

11.20

自引率

9.20%

发文量

240

期刊介绍： Research in International Business and Finance (RIBAF) seeks to consolidate its position as a premier scholarly vehicle of academic finance. The Journal publishes high quality, insightful, well-written papers that explore current and new issues in international finance. Papers that foster dialogue, innovation, and intellectual risk-taking in financial studies; as well as shed light on the interaction between finance and broader societal concerns are particularly appreciated. The Journal welcomes submissions that seek to expand the boundaries of academic finance and otherwise challenge the discipline. Papers studying finance using a variety of methodologies; as well as interdisciplinary studies will be considered for publication. Papers that examine topical issues using extensive international data sets are welcome. Single-country studies can also be considered for publication provided that they develop novel methodological and theoretical approaches or fall within the Journal''s priority themes. It is especially important that single-country studies communicate to the reader why the particular chosen country is especially relevant to the issue being investigated. [...] The scope of topics that are most interesting to RIBAF readers include the following: -Financial markets and institutions -Financial practices and sustainability -The impact of national culture on finance -The impact of formal and informal institutions on finance -Privatizations, public financing, and nonprofit issues in finance -Interdisciplinary financial studies -Finance and international development -International financial crises and regulation -Financialization studies -International financial integration and architecture -Behavioral aspects in finance -Consumer finance -Methodologies and conceptualization issues related to finance