The influence of national culture on venture capital activity

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School of Business | Bachelor's thesis

Date

2018

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Mcode

Degree programme

Rahoitus

Language

fi

Pages

25 + 2

Series

Abstract

This study provides new evidence on the impact of national culture on venture capital activity. The previous literature examining the relationship between national culture and domestic VC activity is very limited. However, national culture has been found to influence economic and management behaviors (Hofstede, 1980, 2001). Therefore, it is presumable, that culture influences the two major determinants of venture capital activity; entrepreneurial activity and access to venture capital financing. I examine the effect of Hofstede’s six cultural dimensions, power distance, individualism, masculinity, uncertainty avoidance, long-term orientation and indulgence. I find that feminine culture is associated with higher level of VC activity. Consistent with Li and Zahra (2012) I also find, that uncertainty avoidance and collectivism are negatively associated with VC activity. Furthermore, I build a framework (Figure 9) through which further research could be executed by exploiting the framework and path analysis technique.

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Thesis advisor

Spickers, Theresa

Keywords

culture, venture capital, capital, national, cultural, dimensions, investment, comparative

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