The age dependence in financial innovation from the national, institutional and cultural perspective

Abstract

Abstract: This paper draws on the age dependence arguments from organizational ecology, organizational learning and evolutionary theory, and explores the influence of organizational age upon financial innovation. Furthermore, this paper adopts the national, institutional and cultural perspectives and looks into how the age effect varies across national contexts. Our empirical analysis is based upon the panel data of more than 100 futures exchanges in the world between 2000 and 2010. The results show a U-shaped relationship between organizational age and financial innovation; such a nonlinear relationship is more pronounced in nations with low economic regulation and high uncertainty avoidance. Our research findings provide important implications for the development of financial institutions and the improvements of the financial regulatory system in China.

Key words: financial innovation, age dependence, national institutions and culture, futures exchange across countries

CLC Number:

F272.3

Su Yiyi. The age dependence in financial innovation from the national, institutional and cultural perspective[J]. Science Research Management, 2015, 36(7): 86-95.

References

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