DP9716 The Value of Corporate Culture
|Author(s):||Luigi Guiso, Paola Sapienza, Luigi Zingales|
|Publication Date:||November 2013|
|Keyword(s):||Corporate culture, Going Public, Integrity|
|Programme Areas:||Financial Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=9716|
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, 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.