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Culture as a catalyst: The impact of corporate culture on strategic alliances and equity market response

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  • Shiblu, Kawser Ahmed
  • Toscano, Francesca

Abstract

This study investigates the relationship between corporate culture and strategic alliances. We find that firms with strong cultural frameworks are more likely to form strategic alliances, particularly in contract-intensive sectors. Additionally, corporate culture acts as a substitute for factors like industry competition or potential credit rating changes. Culture impacts nearly every domain aside from funding-related alliances, with Teamwork, Innovation, and Quality representing the most significant dimensions. Finally, equity markets respond positively to alliance announcements from firms with stronger cultural values, suggesting that investors view corporate culture as a key driver of strategic success.

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  • Shiblu, Kawser Ahmed & Toscano, Francesca, 2026. "Culture as a catalyst: The impact of corporate culture on strategic alliances and equity market response," Journal of Financial Stability, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:finsta:v:82:y:2026:i:c:s1572308925001251
    DOI: 10.1016/j.jfs.2025.101496
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    JEL classification:

    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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