Time Encoding in Languages and Investment Efficiency
研究发现，语言中未来与现在时态区分越弱，该语言使用者的企业投资不足现象越少，表明语言的时间编码影响认知和投资决策。
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. This paper was accepted by Shivaram Rajgopal, accounting.