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The value of corporate culture

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Listed:
  • Guiso, Luigi
  • Sapienza, Paola
  • Zingales, Luigi

Abstract

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.

Suggested Citation

  • Guiso, Luigi & Sapienza, Paola & Zingales, Luigi, 2015. "The value of corporate culture," Journal of Financial Economics, Elsevier, vol. 117(1), pages 60-76.
  • Handle: RePEc:eee:jfinec:v:117:y:2015:i:1:p:60-76
    DOI: 10.1016/j.jfineco.2014.05.010
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    References listed on IDEAS

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    1. Alan J. Auerbach, 1988. "Corporate Takeovers: Causes and Consequences," NBER Books, National Bureau of Economic Research, Inc, number auer88-1, July.
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    More about this item

    Keywords

    Corporate culture; Integrity; Going public;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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