The value of corporate culture

Luigi Guiso, Paola Sapienza, Luigi Zingales*

*Corresponding author for this work

Research output: Contribution to journalArticle

106 Scopus citations

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.

Original languageEnglish (US)
Pages (from-to)60-76
Number of pages17
JournalJournal of Financial Economics
Volume117
Issue number1
DOIs
StatePublished - Jul 1 2015

Keywords

  • Corporate culture
  • Going public
  • Integrity

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics
  • Strategy and Management

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