6533b827fe1ef96bd1286f57
RESEARCH PRODUCT
The effect of language use on the financial performance of microfinance banks: Evidence from cross-border activities in 74 countries
Roy MerslandTrond RandøyRebecca PiekkariSougand GolesorkhiGrigory Pishchulovsubject
Language in business/dk/atira/pure/subjectarea/asjc/2000/2003FrenchFinancial systemInternational businessMicrofinanceFirm performanceSpanishlaw.inventionInter-firm international partnershiplawEnglish0502 economics and businessBusiness and International Managementta512/dk/atira/pure/subjectarea/asjc/1400/1403MarketingMicrofinanceFinancial performance05 social sciencesLinguistic distance050211 marketingBusinessOn Language/dk/atira/pure/subjectarea/asjc/1400/1406050203 business & managementFinancedescription
Abstract This multi-year study examines the relationship between financial performance and language use, observing 405 partnerships between microfinance banks and their international financial partners in 74 countries. Drawing on language research in international business, we find that microfinance banks based in English-speaking, French-speaking, and Spanish-speaking countries have higher performance. Furthermore, the linguistic distance between the home country of a microfinance bank and the home country of its international partner(s) is negatively related to its financial performance. Our large-scale study confirms the effect of language use on organization-level financial performance and extends research on language in multinationals from intra-firm to inter-firm relationships.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2019-04-01 |