Yes / Although a cornerstone of traditional finance theory, empirical evidence in support of a positive mean-variance relation is far from conclusive, with the behavior of retail investors commonly thought to be one of the root causes of departures from this expected relationship. The behavior of institutional investors, conventionally thought to be sophisticated and rational, has recently come under closer scrutiny, including in relation to investor sentiment. Drawing together these two strands of literature, this paper examines the impact of institutional investor sentiment on the mean-variance relation in six regions, including Asia (excl. Japan), Eastern Europe, Eurozone, Japan, Latin America, and the US, and across thirtyeight markets. Empirical evidence supports the differential impact of institutional investor sentiment on the mean-variance relation (i.e., positive or negative), both across regions and across markets. In particular, for markets with cultural proneness to overreaction and a low level of market integrity institutional investor sentiment tends to distort the risk-return tradeoff.

Why Do Borrowers Choose Arms Over FRMS? : A Behavioral Investigation in the U.S. and Japan by Masaki Mori In the U.S., a considerable number of borrowers still choose adjustable rate mortgages (ARMs) over fixed rate mortgages (FRMs), even with historically low interest rates. During 2004-2005, when interest rates remained at 30-year lows, ARMs accounted for approximately one-third of all mortgage originations. Kahneman and Tversky's Prospect Theory’s reflection hypothesis suggested that people tend to be more risk-averse in positive decision situations, while they tend to be more risk-seeking when making negative choices. The first purpose of this study is to examine descriptive reasons for the popularity of ARMs in the U.S. People of different cultures often evaluate uncertain events in different ways. Hofstede developed a cultural dimension, uncertainty avoidance (UA), where UA is defined as the extent to which people feel threatened by uncertain situations. The second purpose of this study is to test the role of UA on the choice of mortgage products using data from two cultures (U.S. and Japan), potentially differing in attitude toward uncertain situations. Controlled experiments were conducted using 92 U.S. participants and 49 Japanese participants. Results of analysis supported Prospect Theory’s reflection hypothesis, suggesting that risk-averse people tend to become more risk-seeking when choosing a mortgage type, leaning more toward ARMs when people frame the mortgage choice problem as part of a loss situation. The results of the intercultural comparison portion of the study supported the research hypothesis that UA works as a moderating variable for Prospect Theory’s reflection hypothesis, suggesting that risk-averse people with lower UA scores more dramatically change from a risk-averse preference for a fixed-rate bond to a more risk-seeking preference for an adjustable-rate mortgage, than risk-averse people with higher UA scores do. Overall, results of this study suggested that borrowers behave differently depending on their propensity for current consumption, the level of UA, and how they frame the mortgage choice decision. This study contributes to existing mortgage choice literature by incorporating psychological and cultural traits to examine borrowers’ attitudes towards interest rate risk with regard to residential mortgages. The findings are of great importance globally for governments and lenders in creating and introducing new mortgage products in countries with diverse cultures.

Although the Job Demands-Resources Model (JD-R) is the dominant theoretical framework used to understand the relationship between workplace factors and employee well-being, the cross-cultural generalizability of this model has seldom been directly tested. Therefore, this study examined whether and to what extent relationships between: 1) job demands (i.e., organizational constraints) and strain (i.e., job satisfaction, and turnover intentions) and 2) job resources (i.e., job control, participation in decision-making, direct supervisor support, senior leader support, and clear goals and performance feedback) and strain were moderated by cultural dimensions (i.e., individualism-collectivism and uncertainty avoidance). Survey data from workers in 28 countries were used to examine these questions. Results revealed that culture-level individualism-collectivism and uncertainty avoidance independently and significantly moderated some job demands-strain and job resources-strain outcomes relationships. Specifically, job control and senior leaders support was consistently and more strongly, negatively related to strain in more individualistic cultures, and participation in decision-making was more strongly, negatively related to strain in more collectivistic cultures when using cultural scores from both Hofstede and GLOBE taxonomies. In contrast, although I also uncovered some significant moderating effects of culture-level uncertainty avoidance on job demands-strain and job resources-strain relationships, the results from these analyses were often in the opposite pattern when GLOBE versus Hofstede cultural scores were used. Overall, the present study sheds light on the generalizability versus specificity of the JD-R model across cultural contexts.

Abstract Title: The impact of national culture on the organizational culture: Multinational companies doing businesses in developing countries Level: Final assignment for Master Degree in Business Administration (MBA) Author: Md. Mahbub Alam Supervisor: Dr. Ehsanul Huda Chowdhury Examiner: Dr. Maria Fregidou-Malama Day: 2017- May Aim: The aim of the study is to understand how national culture of Bangladesh is affecting the organizational culture of the multinational firms operating in Bangladesh. To understand the issue, Hofstede’s Cultural Dimensions are regarded as benchmark for analysis. Method: Qualitative study has been conducted whereby both primary and secondary data are used. Hereby, primary data have been gathered from ten employees of Grameen Phone a multinational working in Bangladesh. To collect data, face to face interviews has been conducted using Skype. Results & Conclusions:  Finding of the study is the MNCs integration with national culture with the view to sustainable business operation. It has been demonstrated that national culture affects the organizational culture in the form of employee participation, collective working environment, collaborative work efforts, and knowledge sharing through continuous communication. Suggestions for future research: Further investigations on national culture’s impact on organizational culture can be undertaken by making a comparison between MNC and a purely local firm. Additionally, an analysis on a large number of MNCs operating in host country can add value for further researches. Contribution of the thesis: To the theoretical model, this study makes contribution on the ground of understanding how MNC adapt their business with local culture where cultural sensitiveness is high. Managerial implications: MNCs can ensure collaboration, support, and teamwork among employees as part of their attempt to integrate with local culture. This study reveals that local employees can be used as means of cultural carriers by managers which can promptly address the cultural differences to be mitigated. Keywords: Multi-national Corporations (MNCs), National Culture, Organizational Culture, Uncertainty Avoidance, Individualism vs. Collectivism, Power Distance

Uncertainty avoidance as a cultural construct has been known to affect worker stress and performance in organizations, but a review of these findings has not been done up until this point. In effort to clarify the relationship between uncertainty avoidance and stress and performance, a comprehensive literature search was performed. Findings from articles on this topic have been presented. In addition, organizational practices for accommodating uncertainty avoidance and other cultural dimensions have been explored. This review shows that uncertainty avoidance appears to be linked to higher stress, while its relationship to performance appears to depend on other factors. Best practices for accommodating uncertainty avoidance tend to include enhanced communication and structure. Ideas for future research on this topic are discussed.

In this research, I examine the pay equity dilemma women face around the world and how it is different in various regions of the world. My research question focuses on “how a nation’s cultural characteristics affect pay equity?” It is already documented that men are paid more than women. The goal of this study is to explain how individual characteristics of national culture (such as masculinity, individualism, power distance, and uncertainty avoidance) impacts this inequality. By increasing the understanding of pay inequality, changes can be made that will improve the lives of not just women but the families of those women and the world overall. We use data from Geert Hofstede's national culture dimensions and the Global Gender Gap Report by the World Economic Forum. Our results suggest that gender gap reduces in low power distance cultures, in high individualistic cultures, in low masculine cultures, and in low uncertainty avoidance cultures. Our results provide evidence that the economic prosperity of women around the world is significantly impacted by cultural dimensions.

Real estate investments are more frequently crossing borders. The national cultural differences, which are influencing investment preferences and decision processes, are challenging Real Estate Companies, whereas not only capital, but also individuals are moving more frequently across country borders. Real Estate Companies’ risk profile concerning uncertainty avoidance, regarding real  estate investments haven’t  been studied before, thus a gap in the literature is identified. This study aims to identify risks, risk management tools, uncertainty avoidance in Real Estate Companies with different national cultural background, helping to develop a deeper understanding of the differences in their risk profiles. I have found that the Israeli respondents are highly uncertainty avoiding and risk loving, but only regarding familiar risks, while concerning unfamiliar risks, they are rather risk averse. The Swedish respondents are weakly uncertainty avoiding and risk neutral, no matter known or unknown ris

Die Forschungsarbeit beabsichtigte den Zusammenhang zwischen Kultur und der wahrgenommenen Bedienbarkeit der PIM Software seitens deutscher und indonesischer Anwender, welcher in zwei Experimenten untersucht wurde, zu erforschen. Die Entwicklung der PIM Technologie in beiden Ländern, sowie deren kultureller Wert, insbesondere Unsicherheitsvermeidung (UA) und Individualismus-Kollektivismus (INCOL), repräsentieren die zentralen Beweggründe der vorliegenden Untersuchung. Der betrachtete kulturelle Hintergrund und die verwendete Methodik stellen die Verbindung zwischen der ersten und zweiten Studie dar. Die Experimente waren in zwei Studien aufgeteilt, da jeder kulturelle Hintergrund ein unterschiedliches Erhebungsdesign benötigt: UA steht in Beziehung mit der ersten vs. der zweiten Aufgabe und INCOL wurde mittels zwei verschiedenen Wegen der Vervollständigung erfasst (Individual- vs. Gruppenaufgabe). Während sich der Fokus der ersten Studie auf den Vergleich zwischen der deutschen und indonesischen Kultur richtet, konzentrierte sich die zweite Studie auf Kulturen zwischen (Deutschland vs. Indonesien) und innerhalb eines Landes (Individualismus vs. Kollektivismus). Die Ergebnisse legen dar, dass deutsche Anwender ein höheres Level an Unsicherheitsvermeidung als indonesische Anwender zeigen. Lediglich hinsichtlich der Zufriedenheit weisen indonesische, verglichen zu deutschen Benutzern, einen höheren Wert auf, wobei der Haupteffekt der Zeit nur bezüglich der Höhe der Effizienz signifikant ist. Es zeigte sich außerdem ein positiver Zusammenhang zwischen UA und der Effizienz beider Aufgaben, sowie eine negative Korrelation zwischen UA und der berichteten Zufriedenheit. Hinsichtlich der Höhe von UA und der Effektivität ließ sich kein negativer Zusammenhang nachweisen. Desweiteren, betreffend INCOL, lässt sich zusammenfassen, dass der Hauptinteraktionseffekt Aufgabe*INCOL statistisch signifikant ist. Bezüglich Effizienz und Zufriedenheit ist entscheidend, dass, je höher die Ausprägung von Individualismus und Kollektivismus auf Seiten der Anwender ist, desto weniger Zeit beanspruchen diese für die Ausführung individueller Aufgaben und desto zufriedener wenden die Benutzer das PIM und GIM Tool an. Mit eingeschlossen ist jedoch, dass sich zwischen Individualismus und Kollektivismus deutscher und indonesischer Bediener kein Zusammenhang mit der Höhe der Effektivität darstellen lasst. Zusammenfassend ist festzuhalten, dass die Entwickler der PIM Software mit einer internationalen Anwendergruppe beachten sollten, dass die Ergebnisse von Usability Messungen seitens Benutzeranfänger in verschiedenen Kulturen unterschiedlich sein können.

Due to the nature of globalization, new strategies have been designed to break into new markets. Joint Venture is a common strategy to enter new markets and by using a Joint Venture, companies share risks and establish new contacts with local knowledge. Brazil is a market where foreign investors gain more and more interest. Brazil's economy is growing fast and made well during the global financial crisis. The middle class in Brazil is constantly growing and for the first time, poverty is not a majority in Brazil.In an International Joint Venture (IJV), it is usually a foreign company establishing a partnership with a local company. Often, IJVs fail because companies have problems collaborating, depending on different variables. In this thesis, we chose to analyze the cultural barriers in a Brazilian-Swedish IJV on the Brazilian market. The purpose of this thesis is to gain an understanding and describe cultural barriers in an IJV partnership, and high-light those to increase the chances for successful IJVs between Brazilian and Swedish companies in the future.This thesis is qualitative, with an abductive approach, in order to gain a deeper and better understanding of experienced barriers. We have chosen to see culture from both a national and an organizational perspective as earlier research has showed that national culture affects the organizational culture within an IJV. Using Hofstede's (1991) four dimensions of national culture as a supplement to Wilson’s (2001) four factors influencing the organizational culture, we have conducted four interviews in two Swedish-Brazilian IJV companies located in São Paulo, Brazil. The companies we have chosen to interview have been small or medium-sized manufacturing. Interviews were conducted face-to-face in a comfortable environment for all respondents. In our analysis, we used matrices to make it easier to see what differences and/or similarities there are between the case-companies.Results of this study, demonstrate that the experiences from the two case-studies are well in line with each other. The organizational structure in Brazil has been perceived as more hierarchical than the Swedish vertical and more open structure. This in turn, has strengthened the differences in communication between managers and employees, which been perceived as more top-down in Brazil than in Sweden. Our conclusion is that cultural barriers have been perceived, in the perception of the leaders’ expected behavior, language barriers, differences in planning and management of uncertain situations, Brazil's more family-oriented society and close relationship between private life and work in the Brazilian market.Several of these barriers have been experienced during the early start-up of an IJV, something we believe increases the importance of being well prepared for cultural barriers that may arise. The importance of an agreement upon the structure and policies at the company at an early stage is crucial, to reduce future possible conflicts. Show mutual respect and understanding for one's partners’ culture and experienced cultural barriers, use these to avoid any negative effects, and instead create a positive impact for the IJV. / Minor Field Study

Context: Agile methodologies are widely recognized in western countries. From past few years, its practices are being successfully adopted in global settings especially in eastern countries. Across the world, teams are following its values and principles. Are all the teams behaving in the same way? Potential difficulties related to culture arise while implementing agile practices. Due to variance in backgrounds and behaviors, social cliques and issues are likely to be formed between the team mates which become a hurdle. Objectives: The study unravels the list of relationships between the agile team behavioral characteristics and Hofstede cultural dimensions. It also explores whether Indian employees working in an agile environment possess the required behavioral characteristics which are useful for the effective functioning of a team. The other objective of this study reveals the influence of the years of experience of the agile employees on behavioral characteristics. Methods: Data collection processes include a literature review and a web survey. First, in the literature review analysis of the empirical studies from year 1999-2011 was done. The review approach helped in collecting and summarizing the data. The studies were identified from the most reliable and authentic databases that are scientifically and technically peer reviewed such as Engineering village, IEEE Xplore, ACM digital library, Springer Link and Google Scholar. A survey was conducted with 33 practitioners from various multinational organizations in India. Statistical analysis was used to analyze the data. Results: Hofstede’s cultural dimensions had noticeable influence on agile team behavioral characteristics. Although, all the enabler characteristics were not seen in Indian culture, the results clearly show that some of the cultural dimensions are enabling factors to function well in an agile team and some hinder the team effectiveness. The result from the literature review shows the list of relationships between Hofstede cultural dimensions and agile team behavioral characteristics. All team behavioral characteristics were to a certain extent demonstrated by Indian agile employees, which can be known from the survey results. It is also seen from the survey results that, team behavioral characteristics can be demonstrated more effectively by the experienced agile employees. Conclusion: From this study, we have found the relationships between Hofstede cultural dimensions and agile team behavioral characteristics. List of agile team behavioral characteristics which were followed by Indian agile employees were obtained from the survey. We conclude that Indian agile employees were able to demonstrate all the agile team behavior characteristics required for an effective functioning of a team. One more interesting thing which came into our attention, after analyzing the survey was that years of experience of agile employees do have an effect on the employees which influences the demonstration of team behavior characteristics. It was clear that demonstration of these characteristics were not only dependent on individual’s nature but also on the years of experience in agile environment. The absence of relationships which were not found through literature needs to be focused. Hence we conclude that there is a need for conducting even more in-depth surveys and reviews to investigate the unfound relationships.