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The Impact of Corporate Culture Disclosure on Performance: A Quantitative Approach

Author

Listed:
  • Zhaorui Guo

    (School of Business, Shanghai Normal University and Shanghai Advanced Institute of Finance, Shanghai Jiaotong University, Shanghai, China)

  • Kam C. Chan

    (Gordon Ford College of Business, Western Kentucky University, Bowling Green, KY 42101, United States)

  • Yunkui Xue

    (Cheung Kong Graduate School of Business, Dongcheng, Beijing, China)

Abstract

In this paper, we propose a quantitative approach to measure the extent of corporate culture disclosure. Using this new measure, we document that corporate culture disclosure and performance is positively correlated in terms of stock return, return on assets, cash flow, earnings growth, sales growth, return on sales, and turnover; corporate culture disclosure also helps to lower the negative impact of missing earnings benchmarks using a sample of Chinese firms. In addition, we find that the extent of corporate culture disclosure is negatively correlated with earnings management and operational risk exposure. Essentially, our comprehensive analysis provides a good illustration of using the method to measure corporate culture disclosure.

Suggested Citation

  • Zhaorui Guo & Kam C. Chan & Yunkui Xue, 2016. "The Impact of Corporate Culture Disclosure on Performance: A Quantitative Approach," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 19(02), pages 1-29, June.
    • Handle: RePEc:wsi:rpbfmp:v:19:y:2016:i:02:n:s0219091516500120
    DOI: 10.1142/S0219091516500120
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    References listed on IDEAS

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    Cited by:

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    2. Luminita Enache & Khaled Hussainey, 2020. "The substitutive relation between voluntary disclosure and corporate governance in their effects on firm performance," Review of Quantitative Finance and Accounting, Springer, vol. 54(2), pages 413-445, February.

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