Does Corporate Culture Matter? An Empirical Study on Japanese Firms
Corporate culture does matter. Using Japanese firms' data from 1987-2000, we have shown that the strength of corporate culture significantly affects corporate policies such as employment policy, management structure, and financial structure. We have also confirmed that the culture and its embedding contribute to better corporate performance. These culture effects are found to be considerable in magnitude and at least as large as those of other factors. We suggest that it is important to recognize the existence of the culture for understanding corporate policies and performance.
|Date of creation:||May 2007|
|Date of revision:|
|Contact details of provider:|| Postal: 11th floor, Annex, Ministry of Economy, Trade and Industry (METI) 1-3-1, Kasumigaseki Chiyoda-ku, Tokyo, 100-8901|
Web page: http://www.rieti.go.jp/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Luigi Zingales, 2000.
"In Search of New Foundations,"
NBER Working Papers
7706, National Bureau of Economic Research, Inc.
- Rafael Rob & Peter Zemsky, .
"Social Capital, Corporate Culture and Incentive Intensity,"
Penn CARESS Working Papers
7380c2f90d0b2f362ad71f139, Penn Economics Department.
- Rafael Rob & Peter Zemsky, 2002. "Social Capital, Corporate Culture, and Incentive Intensity," RAND Journal of Economics, The RAND Corporation, vol. 33(2), pages 243-257, Summer.
- Carrillo, Juan D. & Gromb, Denis, 1999. "On the strength of corporate cultures," European Economic Review, Elsevier, vol. 43(4-6), pages 1021-1037, April.
- Prescott, Edward C & Visscher, Michael, 1980. "Organization Capital," Journal of Political Economy, University of Chicago Press, vol. 88(3), pages 446-61, June.
- Raghuram G. Rajan & Luigi Zingales, 2000.
"The Governance of the New Enterprise,"
NBER Working Papers
7958, National Bureau of Economic Research, Inc.
- Carrillo, Juan D & Gromb, Denis, 2002.
"Cultural Inertia and Uniformity in Organizations,"
CEPR Discussion Papers
3613, C.E.P.R. Discussion Papers.
- Eric Van den Steen, 2010.
"On the origin of shared beliefs (and corporate culture),"
RAND Journal of Economics,
RAND Corporation, vol. 41(4), pages 617-648.
- Van den Steen, Eric, 2005. "On the Origin of Shared Beliefs (and Corporate Culture)," Working papers 27855, Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Katsuhito Iwai, 2002. "The Nature of the Business Corporation: Its Legal Structure and Economic Functions," The Japanese Economic Review, Japanese Economic Association, vol. 53(3), pages 243-273.
- Andrei Shleifer & Lawrence H. Summers, 1988.
"Breach of Trust in Hostile Takeovers,"
in: Corporate Takeovers: Causes and Consequences, pages 33-68
National Bureau of Economic Research, Inc.
- Rajan, Raghuram G & Zingales, Luigi, 1995.
" What Do We Know about Capital Structure? Some Evidence from International Data,"
Journal of Finance,
American Finance Association, vol. 50(5), pages 1421-60, December.
- Raghuram G. Rajan & Luigi Zingales, 1994. "What Do We Know About Capital Structure? Some Evidence from International Data," NBER Working Papers 4875, National Bureau of Economic Research, Inc.
- Ouchi, William, 1981. "Theory Z: How American business can meet the Japanese challenge," Business Horizons, Elsevier, vol. 24(6), pages 82-83.
- Pascale, Richard Tanner & Athos, Anthony G., 1981. "The art of Japanese management," Business Horizons, Elsevier, vol. 24(6), pages 83-85.
- Harris, Milton & Raviv, Artur, 1991. " The Theory of Capital Structure," Journal of Finance, American Finance Association, vol. 46(1), pages 297-355, March.
- Chowdhry, Bhagwan & Garmaise, Mark J., 2003. "Organization Capital and Intrafirm Communication," University of California at Los Angeles, Anderson Graduate School of Management qt8j01z46g, Anderson Graduate School of Management, UCLA.
When requesting a correction, please mention this item's handle: RePEc:eti:dpaper:07030. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (NUKATANI Sorahiko)
If references are entirely missing, you can add them using this form.