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The Effect of Cultural Descriptive Norms on Financial Systems: A Cross-Cultural Analysis

Year 2022, Volume: 30 Issue: 54, 35 - 52, 25.10.2022

Mert Aktaş Filiz Bozagaç Ömür Saltık

https://doi.org/10.17233/sosyoekonomi.2022.04.02

Abstract

We investigated the effect of descriptive, cultural norms on national financial systems by comparing the incentive for achievement and risk-aversion attributes of 32 different nations’ cultures. Multiple regression analyses showed that performance and future orientation positively relate to market capitalisation, but institutional collectivism and uncertainty avoidance negatively correlate. Performance orientation boosted market capitalisation, but institutional collectivism, whereas uncertainty avoidance hindered it. We could not find any relationship between the cultural norms and the bank deposit ratios. Two steps scatter plot analysis showed clusters between cultural norms, bank deposit, and future orientation norms.

Keywords

Descriptive Cultural Norms Financial Systems Bank-Based Systems Capital Market-Based System Risk-Taking

References

  • Aktas, M. et al. (2016), “Cultural Tightness-Looseness and Perceptions of Effective Leadership”, Journal of Cross-Cultural Psychology, 47(2), 294-309.
  • Allen, F. & D. Gale (1997), “Financial Markets, Intermediaries, and Intertemporal Smoothing”, Journal of Political Economy, 105(3), 523-546.
  • Arthur, Jr. W. et al. (2007), “A Longitudinal Examination of The Comparative Criterion-Related Validity of Additive And Referent-Shift Consensus Operationalizations of Team Efficacy”, Organizational Research Methods, 10(1), 35-58.
  • Barth J.R. et al. (1997), “Commercial Banking Structure, Regulation, and Performance: An International Comparison”, Managerial Finance, 23(11), 1-39.
  • Boot, A.W. & A.V. Thakor (1997), “Financial System Architecture”, The Review of Financial Studies, 10(3), 693-733.
  • Choe, C. & I.A. Moosa (1999), “Financial System and Economic Growth: The Korean Experience”, World Development, 27(6), 1069-1082.
  • Coget, J.F. (2011), “Does National Culture Affect Firm Investment in Training and Development?”, Academy of Management Perspectives, 25(4), 85-87.
  • Çiçen, Y.B. (2021), “Relationship between Political and Financial Risks in Turkey: Evidence from Fourier Cointegration Analysis Regarding Institutional Structures”, Sosyoekonomi, 29(48), 127-143.
  • De Jong, E. & R. Semenov (2002), “Cross-Country Differences in Stock Market Development: A Cultural View”, in: EFA 2002 Berlin Meetings Presented Paper, University of Groningen, Research School Systems, Organization and Management, June, Research Report 02E40.
  • Demirgüç-Kunt, A. & R. Levine (1999), Bank-Based and Market-Based Financial Systems: Cross-Country Comparisons, Vol 2143, The World Bank Publications.
  • Donadelli, M. & L. Persha (2014), “Understanding Emerging Market Equity Risk Premia: Industries, Governance and Macroeconomic Policy Uncertainty”, Research in International Business and Finance, (30), 284-309.
  • Dow, J. (2000), What Is Systemic Risk?: Moral Hazard, Initial Shocks and Propagation, Institute for Monetary and Economic Studies, Bank of Japan.
  • Dowd, K. (2009), “Moral Hazard and The Financial Crisis”, Cato Journal, 29(1), 141-166.
  • Enciso, L.F. et al. (2016), “Influence of World Governance Indicators on the Determination of Sovereign Ratings in Latin American Countries”, WSEAS Transactions on Business and Economics, (13), 216-228.
  • Fischer, M.D. (2008), “Cultural Dynamics: Formal Descriptions of Cultural Processes”, Structure and Dynamics, 3(2), 1-16.
  • Fischer, R. (2006), “Congruence and Functions of Personal and Cultural Values: Do My Values Reflect My Culture’s Values?”, Personality And Social Psychology Bulletin, 32(11), 1419-1431.
  • Fischer, R. (2009), “Where Is Culture in Cross Cultural Research? An Outline of A Multilevel Research Process for Measuring Culture As A Shared Meaning System”, International Journal of Cross Cultural Management, 9(1), 25-49.
  • Gelfand, M.J. & J.R. Harrington (2015), “The Motivational Force of Descriptive Norms: For Whom And When Are Descriptive Norms Most Predictive of Behavior?”, Journal of Cross-Cultural Psychology, 46(10), 1273-1278.
  • Gelfand, M.J. et al. (2011), “Differences Between Tight And Loose Cultures: A 33-Nation Study”, Science, 332(6033), 1100-1104.
  • Hanges, P.J. & M.W. Dickson (2004), “The Development and Validation of The GLOBE Culture And Leadership Scales”, Culture, Leadership, And Organizations: The GLOBE study of, 62, 122-151.
  • Hofstede, G. (1980), Culture's Consequences: International Differences In Work-Related Values, Newbury Park, CA: Sage.
  • Hofstede, G. (1991), Organizations and Cultures: Software of The Mind, McGraw-Hill, New York.
  • Hofstede, G. (2001), Culture's Consequences: Comparing Values, Behaviors, Institutions and Organizations Across Nations, Sage Publications.
  • Hofstede, G. et al. (1990), “Measuring Organizational Cultures: A Qualitative and Quantitative Study Across Twenty Cases”, Administrative Science Quarterly, 35(2), 286-316.
  • House, R.J. et al. (1997), Cross-Cultural Research on Organizational Leadership: A Critical Analysis and A Proposed Theory, San Francisco, CA Jossey-Bass.
  • House, R.J. et al. (eds.) (2004), Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies, Sage Publications.
  • İltaş, Y. & G. Üçler (2019), “Kurumsal Kalite ve Finansal Riskin Menkul Kıymetler Borsası Üzerine Etkisi: Türkiye İçin Ampirik Bir İnceleme”, Sosyoekonomi, 27(41), 113-128.
  • Javidan, M. et al. (2006), “Conceptualizing and Measuring Cultures and Their Consequences: A Comparative Review of GLOBE's and Hofstede's Approaches”, Journal of International Business Studies, 37(6), 897-914.
  • Kaufmann, D. et al. (2010), “The Worldwide Governance Indicators: Methodology and Analytical Issues”, World Bank Policy Research Working Paper, (5430).
  • Klein, K.J. & S.W. Kozlowski (2000), Multilevel Theory, Research, and Methods in Organizations: Foundations, Extensions, and New Directions, Jossey-Bass.
  • Kreiser, P.M. et al. (2010), “Cultural Influences on Entrepreneurial Orientation: The Impact of National Culture on Risk Taking and Proactiveness in SMEs”, Entrepreneurship Theory and Practice, 34(5), 959-984.
  • Kwok, C. & S. Tadesse (2006), “National Culture and Financial Systems”, Journal of International Business Studies, 37, 227-247.
  • La Porta, R. et al. (1997), “Legal Determinants of External Finance”, The Journal of Finance, 52(3), 1131-1150.
  • La Porta, R. et al. (1998), “Law and Finance”, Journal of Political Economy, 106(6), 1113-1155.
  • La Porta, R. et al. (2000), “Investor Protection and Corporate Governance”, Journal of Financial Economics, 58(1-2), 3-27.
  • Li, K. et al. (2013), “How Does Culture Influence Corporate Risk-Taking?”, Journal of Corporate Finance, 23, 1-22.
  • Liu, H. & J. Wilson (2009), “The profitability of banks in Japan: the road to recovery?”, Working Paper Series, Cass Business School, Lund, November.
  • Mishkin, F.S. & S.G. Eakins (2012), Financial Markets and Institutions, 7. ed., Essex: Pearson Education Limited, Boston, MA.
  • Nakhli, M.S. & B. Gaies (2021), “Political Risk and Financial Development in Nigeria: Can Credit Buy Social Peace?: Evidence From NARDL approach”, The Quarterly Review of Economics and Finance, 82, 55-62.
  • Pagano, M. & P.F. Volpin (1999), “The Political Economy of Corporate Governance”, American Economic Review, 95(4), 1005-1030.
  • Peng, K. et al. (1997), “Validity Problems Comparing Values Across Cultures And Possible Solutions”, Psychological Methods, 2(4), 329-344.
  • Rajan, R. & L. Zingales (1998), “Financial Development and Growth”, American Economic Review, 88(3), 559-586.
  • Rajan, R. & L. Zingales (2001), “Financial Systems, Industrial Structure, and Growth”, Oxford Review of Economic Policy, 17(4), 467-482.
  • Saraç, T.B. et al. (2016), “Yerli ve Yabancı Yatırımcılara Ait Risk İştahlarının İncelenmesi: Türkiye Örneği”, Sosyoekonomi, 24(30), 29-44.
  • Shteynberg, G. et al. (2009), “Peering Into the ‘Magnum Mysterium’ of Culture: The Explanatory Power of Descriptive Norms”, Journal of Cross-Cultural Psychology, 40(1), 46-69.
  • Soumaré, I. & F. Tchana-Tchana (2015), “Causality Between FDI and Financial Market Development: Evidence From Emerging Markets”, The World Bank Economic Review, 29(suppl_1), 205-216.
  • Stephan, U. & L.M. Uhlaner (2010), “Performance-Based vs Socially Supportive Culture: A Cross-National Study of Descriptive Norms and Entrepreneurship”, Journal of International Business Studies, 41(8), 1347-1364.
  • Swidler, A. (1986), “Culture in Action: Symbols and Strategies”, American Sociological Review, 51(2), 273-286.
  • Tan, Y. & C. Floros (2012), “Stock Market Volatility and Bank Performance in China”, Studies in Economics and Finance, 29(3), 211-228.
  • Triandis, H.C. (1989), “The Self and Social Behavior In Differing Cultural Contexts”, Psychological Review, 96(3), 506-520.
  • Van Oudenhoven, J.P. (2001), “Do Organizations Reflect National Cultures? A 10-Nation Study”, International Journal of Intercultural Relations, 25(1), 89-107.
  • Verplanken, B. & R.W. Holland (2002), “Motivated Decision Making: Effects of Activation and Self-Centrality of Values on Choices and Behavior”, Journal of Personality and Social Psychology, 82(3), 434-447.
  • Webley, P. & E.K. Nyhus (2013), “Economic Socialization, Saving and Assets in European Young Adults”, Economics of Education Review, (33), 19-30.
  • Whitley, R.D. (1991), “The Social Construction of Business Systems In East Asia”, Organization Studies, 12(1), 1-28.
  • Wicker, A.W. (1969), “Attitudes Versus Actions: The Relationship of Verbal and Overt Behavioral Responses To Attitude Objects”, Journal of Social Issues, 25(4), 41-78.
  • Williamson R. & R.M. Stulz (2001), “Culture, Openness, and Finance”, NBER Working Paper, (w8222).

Kültürel Tanımlayıcı Normların Finansal Sistemler Üzerindeki Etkisi: Kültürlerarası Bir Analiz

Year 2022, Volume: 30 Issue: 54, 35 - 52, 25.10.2022

Mert Aktaş Filiz Bozagaç Ömür Saltık

https://doi.org/10.17233/sosyoekonomi.2022.04.02

Abstract

Bu çalışmada, 32 farklı ulusun kültürünün başarı ve riskten kaçınma teşviklerini karşılaştırarak kültürel tanımlayıcı normların ulusal finansal sistemler üzerindeki etkisini araştırdık. Çoklu regresyon analizleri, performans yönelimi ve geleceğe yönelimin piyasa değeri ile pozitif ilişkili olduğunu, ancak kurumsal kolektivizm ve belirsizlikten kaçınmanın negatif ilişkili olduğunu göstermiştir. Performans yönelimi, piyasa kapitalizasyonunu artırdığını, ancak kurumsal kolektivizm, belirsizlikten kaçınmanın piyasa kapitalizasyonunu azalttığını gördük. Kültürel normlar ile banka mevduat oranları arasında herhangi bir ilişkiye rastlamadık. İki aşamalı dağılım grafiği analizi, kültürel normlar, banka mevduatı ve geleceğe yönelik yönelim normları arasındaki kümeleri göstermektedir.

Keywords

Tanımlayıcı Kültürel Normlar Finansal Sistemler Banka Tabanlı Sistemler Sermaye Piyasası Tabanlı Sistemler Risk Alma

References

  • Aktas, M. et al. (2016), “Cultural Tightness-Looseness and Perceptions of Effective Leadership”, Journal of Cross-Cultural Psychology, 47(2), 294-309.
  • Allen, F. & D. Gale (1997), “Financial Markets, Intermediaries, and Intertemporal Smoothing”, Journal of Political Economy, 105(3), 523-546.
  • Arthur, Jr. W. et al. (2007), “A Longitudinal Examination of The Comparative Criterion-Related Validity of Additive And Referent-Shift Consensus Operationalizations of Team Efficacy”, Organizational Research Methods, 10(1), 35-58.
  • Barth J.R. et al. (1997), “Commercial Banking Structure, Regulation, and Performance: An International Comparison”, Managerial Finance, 23(11), 1-39.
  • Boot, A.W. & A.V. Thakor (1997), “Financial System Architecture”, The Review of Financial Studies, 10(3), 693-733.
  • Choe, C. & I.A. Moosa (1999), “Financial System and Economic Growth: The Korean Experience”, World Development, 27(6), 1069-1082.
  • Coget, J.F. (2011), “Does National Culture Affect Firm Investment in Training and Development?”, Academy of Management Perspectives, 25(4), 85-87.
  • Çiçen, Y.B. (2021), “Relationship between Political and Financial Risks in Turkey: Evidence from Fourier Cointegration Analysis Regarding Institutional Structures”, Sosyoekonomi, 29(48), 127-143.
  • De Jong, E. & R. Semenov (2002), “Cross-Country Differences in Stock Market Development: A Cultural View”, in: EFA 2002 Berlin Meetings Presented Paper, University of Groningen, Research School Systems, Organization and Management, June, Research Report 02E40.
  • Demirgüç-Kunt, A. & R. Levine (1999), Bank-Based and Market-Based Financial Systems: Cross-Country Comparisons, Vol 2143, The World Bank Publications.
  • Donadelli, M. & L. Persha (2014), “Understanding Emerging Market Equity Risk Premia: Industries, Governance and Macroeconomic Policy Uncertainty”, Research in International Business and Finance, (30), 284-309.
  • Dow, J. (2000), What Is Systemic Risk?: Moral Hazard, Initial Shocks and Propagation, Institute for Monetary and Economic Studies, Bank of Japan.
  • Dowd, K. (2009), “Moral Hazard and The Financial Crisis”, Cato Journal, 29(1), 141-166.
  • Enciso, L.F. et al. (2016), “Influence of World Governance Indicators on the Determination of Sovereign Ratings in Latin American Countries”, WSEAS Transactions on Business and Economics, (13), 216-228.
  • Fischer, M.D. (2008), “Cultural Dynamics: Formal Descriptions of Cultural Processes”, Structure and Dynamics, 3(2), 1-16.
  • Fischer, R. (2006), “Congruence and Functions of Personal and Cultural Values: Do My Values Reflect My Culture’s Values?”, Personality And Social Psychology Bulletin, 32(11), 1419-1431.
  • Fischer, R. (2009), “Where Is Culture in Cross Cultural Research? An Outline of A Multilevel Research Process for Measuring Culture As A Shared Meaning System”, International Journal of Cross Cultural Management, 9(1), 25-49.
  • Gelfand, M.J. & J.R. Harrington (2015), “The Motivational Force of Descriptive Norms: For Whom And When Are Descriptive Norms Most Predictive of Behavior?”, Journal of Cross-Cultural Psychology, 46(10), 1273-1278.
  • Gelfand, M.J. et al. (2011), “Differences Between Tight And Loose Cultures: A 33-Nation Study”, Science, 332(6033), 1100-1104.
  • Hanges, P.J. & M.W. Dickson (2004), “The Development and Validation of The GLOBE Culture And Leadership Scales”, Culture, Leadership, And Organizations: The GLOBE study of, 62, 122-151.
  • Hofstede, G. (1980), Culture's Consequences: International Differences In Work-Related Values, Newbury Park, CA: Sage.
  • Hofstede, G. (1991), Organizations and Cultures: Software of The Mind, McGraw-Hill, New York.
  • Hofstede, G. (2001), Culture's Consequences: Comparing Values, Behaviors, Institutions and Organizations Across Nations, Sage Publications.
  • Hofstede, G. et al. (1990), “Measuring Organizational Cultures: A Qualitative and Quantitative Study Across Twenty Cases”, Administrative Science Quarterly, 35(2), 286-316.
  • House, R.J. et al. (1997), Cross-Cultural Research on Organizational Leadership: A Critical Analysis and A Proposed Theory, San Francisco, CA Jossey-Bass.
  • House, R.J. et al. (eds.) (2004), Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies, Sage Publications.
  • İltaş, Y. & G. Üçler (2019), “Kurumsal Kalite ve Finansal Riskin Menkul Kıymetler Borsası Üzerine Etkisi: Türkiye İçin Ampirik Bir İnceleme”, Sosyoekonomi, 27(41), 113-128.
  • Javidan, M. et al. (2006), “Conceptualizing and Measuring Cultures and Their Consequences: A Comparative Review of GLOBE's and Hofstede's Approaches”, Journal of International Business Studies, 37(6), 897-914.
  • Kaufmann, D. et al. (2010), “The Worldwide Governance Indicators: Methodology and Analytical Issues”, World Bank Policy Research Working Paper, (5430).
  • Klein, K.J. & S.W. Kozlowski (2000), Multilevel Theory, Research, and Methods in Organizations: Foundations, Extensions, and New Directions, Jossey-Bass.
  • Kreiser, P.M. et al. (2010), “Cultural Influences on Entrepreneurial Orientation: The Impact of National Culture on Risk Taking and Proactiveness in SMEs”, Entrepreneurship Theory and Practice, 34(5), 959-984.
  • Kwok, C. & S. Tadesse (2006), “National Culture and Financial Systems”, Journal of International Business Studies, 37, 227-247.
  • La Porta, R. et al. (1997), “Legal Determinants of External Finance”, The Journal of Finance, 52(3), 1131-1150.
  • La Porta, R. et al. (1998), “Law and Finance”, Journal of Political Economy, 106(6), 1113-1155.
  • La Porta, R. et al. (2000), “Investor Protection and Corporate Governance”, Journal of Financial Economics, 58(1-2), 3-27.
  • Li, K. et al. (2013), “How Does Culture Influence Corporate Risk-Taking?”, Journal of Corporate Finance, 23, 1-22.
  • Liu, H. & J. Wilson (2009), “The profitability of banks in Japan: the road to recovery?”, Working Paper Series, Cass Business School, Lund, November.
  • Mishkin, F.S. & S.G. Eakins (2012), Financial Markets and Institutions, 7. ed., Essex: Pearson Education Limited, Boston, MA.
  • Nakhli, M.S. & B. Gaies (2021), “Political Risk and Financial Development in Nigeria: Can Credit Buy Social Peace?: Evidence From NARDL approach”, The Quarterly Review of Economics and Finance, 82, 55-62.
  • Pagano, M. & P.F. Volpin (1999), “The Political Economy of Corporate Governance”, American Economic Review, 95(4), 1005-1030.
  • Peng, K. et al. (1997), “Validity Problems Comparing Values Across Cultures And Possible Solutions”, Psychological Methods, 2(4), 329-344.
  • Rajan, R. & L. Zingales (1998), “Financial Development and Growth”, American Economic Review, 88(3), 559-586.
  • Rajan, R. & L. Zingales (2001), “Financial Systems, Industrial Structure, and Growth”, Oxford Review of Economic Policy, 17(4), 467-482.
  • Saraç, T.B. et al. (2016), “Yerli ve Yabancı Yatırımcılara Ait Risk İştahlarının İncelenmesi: Türkiye Örneği”, Sosyoekonomi, 24(30), 29-44.
  • Shteynberg, G. et al. (2009), “Peering Into the ‘Magnum Mysterium’ of Culture: The Explanatory Power of Descriptive Norms”, Journal of Cross-Cultural Psychology, 40(1), 46-69.
  • Soumaré, I. & F. Tchana-Tchana (2015), “Causality Between FDI and Financial Market Development: Evidence From Emerging Markets”, The World Bank Economic Review, 29(suppl_1), 205-216.
  • Stephan, U. & L.M. Uhlaner (2010), “Performance-Based vs Socially Supportive Culture: A Cross-National Study of Descriptive Norms and Entrepreneurship”, Journal of International Business Studies, 41(8), 1347-1364.
  • Swidler, A. (1986), “Culture in Action: Symbols and Strategies”, American Sociological Review, 51(2), 273-286.
  • Tan, Y. & C. Floros (2012), “Stock Market Volatility and Bank Performance in China”, Studies in Economics and Finance, 29(3), 211-228.
  • Triandis, H.C. (1989), “The Self and Social Behavior In Differing Cultural Contexts”, Psychological Review, 96(3), 506-520.
  • Van Oudenhoven, J.P. (2001), “Do Organizations Reflect National Cultures? A 10-Nation Study”, International Journal of Intercultural Relations, 25(1), 89-107.
  • Verplanken, B. & R.W. Holland (2002), “Motivated Decision Making: Effects of Activation and Self-Centrality of Values on Choices and Behavior”, Journal of Personality and Social Psychology, 82(3), 434-447.
  • Webley, P. & E.K. Nyhus (2013), “Economic Socialization, Saving and Assets in European Young Adults”, Economics of Education Review, (33), 19-30.
  • Whitley, R.D. (1991), “The Social Construction of Business Systems In East Asia”, Organization Studies, 12(1), 1-28.
  • Wicker, A.W. (1969), “Attitudes Versus Actions: The Relationship of Verbal and Overt Behavioral Responses To Attitude Objects”, Journal of Social Issues, 25(4), 41-78.
  • Williamson R. & R.M. Stulz (2001), “Culture, Openness, and Finance”, NBER Working Paper, (w8222).
There are 56 citations in total.

Details

Primary Language English
Subjects Economics
Journal Section Articles
Authors

Mert Aktaş 0000-0003-3791-6664

Filiz Bozagaç 0000-0002-3764-0111

Ömür Saltık 0000-0001-8507-8971

Publication Date October 25, 2022
Submission Date August 21, 2021
Published in Issue Year 2022 Volume: 30 Issue: 54

Cite

APA Aktaş, M., Bozagaç, F., & Saltık, Ö. (2022). The Effect of Cultural Descriptive Norms on Financial Systems: A Cross-Cultural Analysis. Sosyoekonomi, 30(54), 35-52. https://doi.org/10.17233/sosyoekonomi.2022.04.02
AMA Aktaş M, Bozagaç F, Saltık Ö. The Effect of Cultural Descriptive Norms on Financial Systems: A Cross-Cultural Analysis. Sosyoekonomi. October 2022;30(54):35-52. doi:10.17233/sosyoekonomi.2022.04.02
Chicago Aktaş, Mert, Filiz Bozagaç, and Ömür Saltık. “The Effect of Cultural Descriptive Norms on Financial Systems: A Cross-Cultural Analysis”. Sosyoekonomi 30, no. 54 (October 2022): 35-52. https://doi.org/10.17233/sosyoekonomi.2022.04.02.
EndNote Aktaş M, Bozagaç F, Saltık Ö (October 1, 2022) The Effect of Cultural Descriptive Norms on Financial Systems: A Cross-Cultural Analysis. Sosyoekonomi 30 54 35–52.
IEEE M. Aktaş, F. Bozagaç, and Ö. Saltık, “The Effect of Cultural Descriptive Norms on Financial Systems: A Cross-Cultural Analysis”, Sosyoekonomi, vol. 30, no. 54, pp. 35–52, 2022, doi: 10.17233/sosyoekonomi.2022.04.02.
ISNAD Aktaş, Mert et al. “The Effect of Cultural Descriptive Norms on Financial Systems: A Cross-Cultural Analysis”. Sosyoekonomi 30/54 (October 2022), 35-52. https://doi.org/10.17233/sosyoekonomi.2022.04.02.
JAMA Aktaş M, Bozagaç F, Saltık Ö. The Effect of Cultural Descriptive Norms on Financial Systems: A Cross-Cultural Analysis. Sosyoekonomi. 2022;30:35–52.
MLA Aktaş, Mert et al. “The Effect of Cultural Descriptive Norms on Financial Systems: A Cross-Cultural Analysis”. Sosyoekonomi, vol. 30, no. 54, 2022, pp. 35-52, doi:10.17233/sosyoekonomi.2022.04.02.
Vancouver Aktaş M, Bozagaç F, Saltık Ö. The Effect of Cultural Descriptive Norms on Financial Systems: A Cross-Cultural Analysis. Sosyoekonomi. 2022;30(54):35-52.
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