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Journal of Financial Economics Vol. 117 No. 1 2015

The value of corporate culture

Luigi Guiso1; Paola Sapienza2,3; Luigi Zingales4,3

1 Einaudi Institute for Economics and Finance · 2 Northwestern University · 3 Center for Economic and Policy Research · 4 University of Chicago

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.

DOI
10.1016/j.jfineco.2014.05.010
Volume
117
Issue
1
Pages
60-76
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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