Author(s): Elisabeth Walsh*
The culture of an organization is increasingly recognized as a significant factor influencing various aspects of its operations, including financial decisions. This research article investigates the relationship between corporate culture and financing strategies, specifically focusing on debt maturity decisions. By analyzing empirical data from firms across various industries, we explore how different cultural dimensions—such as risk tolerance, innovation orientation, and stakeholder engagement—impact a company's choice between short-term and long-term debt. Our findings suggest that a strong, adaptive corporate culture correlates with longer debt maturities, as companies with a forward-looking orientation are more likely to invest in long-term projects. Conversely, firms with a conservative culture tend to prefer short-term debt. This study contributes to the understanding of corporate finance by emphasizing the role of organizational culture in shaping financial policies.
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