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DOI :10.26650/JECS2023-1304400   IUP :10.26650/JECS2023-1304400    Full Text (PDF)

A New Era of Capital Structure Choices in Technology Firms: Insights on Cultural Dimensions

Filiz Bozagaç, Ömür Saltık, Mert Aktaş, Süleyman Değirmen

This study investigates the correlation between corporate financial ratios and cultural dimensions across countries in order to guide technology firms in adapting to the current financial landscape characterized by limited borrowing options and higher interest rates. Using Hofstede’s subregional continental classification, it examines the relationship betweencapital structure and value among 4,237 publicly listed technology firms in 46 countries. The study analyzes financial ratios and connects them with Hofstede’s subdimensions of individualism and uncertainty avoidance culture. The findings reveal a significant relationship between cultural dimensions and financial ratios, with individualism and uncertainty avoidance being influential factors. Countries emphasizing individuality tend to have higher borrowing rates, whereas those with a strong preference for uncertainty avoidance exhibit higher gross margins and total debt-to-equity ratios. The borrowing rate variable does not directly affect the dimensions of femininity versus masculinity and uncertainty avoidance; however, it impacts the dimension of individualism versus collectivism. Overall, this study provides valuable insights to enable technology firms to make informed decisions, manage financial structures, and effectively navigate the current financial landscape.

Keywords: Cultural dimensions, Corporate finance, Capital structure, Structural equation model, Technology sector
JEL Classification : C3 , M21 , O16

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APA

Bozagaç, F., Saltık, Ö., Aktaş, M., & Değirmen, S. (2024). A New Era of Capital Structure Choices in Technology Firms: Insights on Cultural Dimensions. Journal of Economy Culture and Society, 0(69), 15-32. https://doi.org/10.26650/JECS2023-1304400


AMA

Bozagaç F, Saltık Ö, Aktaş M, Değirmen S. A New Era of Capital Structure Choices in Technology Firms: Insights on Cultural Dimensions. Journal of Economy Culture and Society. 2024;0(69):15-32. https://doi.org/10.26650/JECS2023-1304400


ABNT

Bozagaç, F.; Saltık, Ö.; Aktaş, M.; Değirmen, S. A New Era of Capital Structure Choices in Technology Firms: Insights on Cultural Dimensions. Journal of Economy Culture and Society, [Publisher Location], v. 0, n. 69, p. 15-32, 2024.


Chicago: Author-Date Style

Bozagaç, Filiz, and Ömür Saltık and Mert Aktaş and Süleyman Değirmen. 2024. “A New Era of Capital Structure Choices in Technology Firms: Insights on Cultural Dimensions.” Journal of Economy Culture and Society 0, no. 69: 15-32. https://doi.org/10.26650/JECS2023-1304400


Chicago: Humanities Style

Bozagaç, Filiz, and Ömür Saltık and Mert Aktaş and Süleyman Değirmen. “A New Era of Capital Structure Choices in Technology Firms: Insights on Cultural Dimensions.” Journal of Economy Culture and Society 0, no. 69 (Nov. 2024): 15-32. https://doi.org/10.26650/JECS2023-1304400


Harvard: Australian Style

Bozagaç, F & Saltık, Ö & Aktaş, M & Değirmen, S 2024, 'A New Era of Capital Structure Choices in Technology Firms: Insights on Cultural Dimensions', Journal of Economy Culture and Society, vol. 0, no. 69, pp. 15-32, viewed 22 Nov. 2024, https://doi.org/10.26650/JECS2023-1304400


Harvard: Author-Date Style

Bozagaç, F. and Saltık, Ö. and Aktaş, M. and Değirmen, S. (2024) ‘A New Era of Capital Structure Choices in Technology Firms: Insights on Cultural Dimensions’, Journal of Economy Culture and Society, 0(69), pp. 15-32. https://doi.org/10.26650/JECS2023-1304400 (22 Nov. 2024).


MLA

Bozagaç, Filiz, and Ömür Saltık and Mert Aktaş and Süleyman Değirmen. “A New Era of Capital Structure Choices in Technology Firms: Insights on Cultural Dimensions.” Journal of Economy Culture and Society, vol. 0, no. 69, 2024, pp. 15-32. [Database Container], https://doi.org/10.26650/JECS2023-1304400


Vancouver

Bozagaç F, Saltık Ö, Aktaş M, Değirmen S. A New Era of Capital Structure Choices in Technology Firms: Insights on Cultural Dimensions. Journal of Economy Culture and Society [Internet]. 22 Nov. 2024 [cited 22 Nov. 2024];0(69):15-32. Available from: https://doi.org/10.26650/JECS2023-1304400 doi: 10.26650/JECS2023-1304400


ISNAD

Bozagaç, Filiz - Saltık, Ömür - Aktaş, Mert - Değirmen, Süleyman. “A New Era of Capital Structure Choices in Technology Firms: Insights on Cultural Dimensions”. Journal of Economy Culture and Society 0/69 (Nov. 2024): 15-32. https://doi.org/10.26650/JECS2023-1304400



TIMELINE


Submitted28.05.2023
Accepted11.11.2023
Published Online06.05.2024

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