Do National Cultures Impact Mortgage and Financial Well-Being Levels? Evidence from Europe

• Type: Article in International Scientific Journal
• Date: 2021

Authors

Ashqar, RI (Author) Other; Lobao, J (Author) FEP

Journal

Title: Scientific Annals of Economics and Business

Vol. 68

Pages: 263-284

ISSN: 2501-1960

Publisher: Alexandru Ioan Cuza University of Iasi

Indexing

ISI Web of Knowledge - 5 Citations

Scopus - 5 Citations

Other information

Authenticus ID: P-00V-KNK

DOI: 10.47743/saeb-2021-0021

Abstract (EN): This study explores the influence of national culture on mortgage and financial well-being levels in the European context. The paper employs regression analysis using mainly Hofstede's cultural dimensions and the EU-SILC dataset from Eurostat to provide a better understanding of the determinants of the decision to hold secured debts and a better explanation of the states of financial well-being. To the best of our knowledge, no study has addressed the influence of culture on mortgage and financial well-being levels in the European setting using samples from different countries and controlling for household characteristics. We conclude that power distance, masculinity, uncertainty avoidance, and long-term orientation are negatively associated with the likelihood of holding a mortgage. The results also show that masculinity, uncertainty avoidance, long-term orientation, and indulgence are negatively associated with the amount of mortgage. Moreover, individualism and long-term orientation (power distance and uncertainty avoidance) are positively (negatively) associated with being in a state of financial wellbeing. Collectively, our research shows that national cultures play a crucial role in household finance.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 22