| Summary: | 碩士 === 國立臺北大學 === 國際企業研究所 === 105 === Under this research, unlike cultural distance which is generally measured from the background difference of Hofstede’s six dimensions, cultural affinity/liking can be described as the feeling of bond and empathy between cultures at the socioeconomic level. Owing to the increasing globalization and the internationalization of firms, interactions between countries and regions have become much more intrigue, as such, interactions within different cultures is inevitable. Most past literature focus on cultural distance as a background measure of culture, however, our argument is conceptually different from existing approaches as we believe that cultural affinity/liking in terms of bond and empathy also plays a crucial role when considering the determinants that affect the degree of internationalization (DOI) of a firm. Therefore, this study examines the DOI of Taiwanese banks under panel data model over the period 2000-2015 and investigates the main determinants of internationalization while also considering the culture affinity/liking factor as an additional role in country-institution specific factors. The empirical results indicate that after considering the cultural affinity factor, estimated coefficient effects of firm age at home country, advertisement intensity, outward direct investment of Taiwanese manufacturing industry, relative interest rate, relative per capita GDP, lag of DOI and cultural affinity/liking have positive effects on the DOI of Taiwanese banks; while cultural distance and global financial crisis have negative effects on the DOI of Taiwanese banks. Overall, the effects of country-specific factors impacting the DOI for Taiwanese banks are higher than firm-specific factors. Hopefully, our empirical results may provide government and management decision makers with guidance when interacting or expanding into foreign markets.
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