Strong Corporate Culture Leads to Strong Performance
It pays for a company to keep its word.
Strong Corporate Culture Leads to Strong PerformancePaper The Values of Corporate Culture
We study which dimensions of corporate culture are related to a firm鈥檚 performance and why. We find that proclaimed values appear irrelevant. Yet, when employees perceive top managers as trustworthy and ethical, firm鈥檚 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.
Published in: Journal of Financial Economics
- Authored by
- 2015
- ESG/CSR
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