The value of corporate culture

✍ Scribed by Guiso, Luigi; Sapienza, Paola; Zingales, Luigi

• Book ID: 124138001
• Publisher: Elsevier Science
• Year: 2015
• Tongue: English
• Weight: 604 KB
• Volume: 117
• Category: Article
• ISSN: 0304-405X
• DOI: 10.1016/j.jfineco.2014.05.010

✦ Synopsis

We study which dimensions of corporate culture are related to a firm's performance and why. We find that proclaimed values appear irrelevant. Yet, when employees perceive top managers as trustworthy and ethical, a firm's performance is stronger. We then study how different governance structures impact the ability to sustain integrity as a corporate value. We find that publicly traded firms are less able to sustain it. Traditional measures of corporate governance do not seem to have much of an impact.