Time Encoding in Languages and Investment Efficiency

• 成果类型: Article
• 署名作者: Kim, Jaehyeon; Kim, Yongtae; Zhou, Jian
• 署名单位: Ajou University; Santa Clara University; Korea Advanced Institute of Science & Technology (KAIST); University of Hawaii System; University of Hawaii Manoa
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2019.3555
• 发表日期: 2021
• 页码: 2609-2629
• 关键词: languages; linguistics; time encoding; future time reference; investment efficiency

摘要

Linguistics research shows that languages differ as to how they differentiate future from present events. Economics research finds that when the grammatical structure of a language disassociates the future from the present, speakers of the language also disassociate the future from the present in their behaviors. This study examines how linguistically induced time perception relates to cross-country variation in investment efficiency. We find that underinvestment is less prevalent in countries where there is a weaker time disassociation in the language. The results from both a within-country analysis based on firms headquartered in different regions of Switzerland and an analysis based on the birthplace information of U.S. firms? chief executive officers confirm the relation between languages and investment efficiency. Collectively, the results suggest that time encoding in languages influences speakers? cognition and their investment decisions.