Corporate Culture and Shareholder Value in Banking Industry

34 Pages Posted: 15 Feb 2009

See all articles by Alessandro Carretta

Alessandro Carretta

University of Rome Tor Vergata - Faculty of Economics

Vincenzo Farina

University of Rome Tor Vergata

Franco Fiordelisi

University of Essex - Essex Business School; University of Rome III, Italy

Paola Schwizer

University of Parma

Date Written: 2008

Abstract

This paper analyses the casual relationship between corporate culture and shareholder value using a sample of large banks in the French, German, Italian and U.K. banking systems over the 2000 to 2003 period. Firstly, we measure shareholder value using an Economic Value Added estimated through a procedure tailored to account for banking peculiarities. Secondly, we measure corporate culture using language as its particular artifact and developing a cultural survey based on the application of a text-analysis model to a corpus of reference texts produced by the sample of banks. We posit six hypotheses regarding the relationship between corporate culture and bank profits and shareholder value. Our results noticeably show that bank profits and shareholder value benefit from different orientations of banking corporate culture.

Keywords: G21, D24, M14

JEL Classification: Shareholder value, Economic Value Added (EVA), Corporate culture, Text analysis

Suggested Citation

Carretta, Alessandro and Farina, Vincenzo and Fiordelisi, Franco and Schwizer, Paola, Corporate Culture and Shareholder Value in Banking Industry (2008). Available at SSRN: https://ssrn.com/abstract=1343674 or http://dx.doi.org/10.2139/ssrn.1343674

Alessandro Carretta

University of Rome Tor Vergata - Faculty of Economics ( email )

Via Columbia n.2
Rome, rome 00100
Italy

Vincenzo Farina (Contact Author)

University of Rome Tor Vergata ( email )

Via Columbia n.2
Rome, rome 00133
Italy
+390672595903 (Phone)
+39062040219 (Fax)

HOME PAGE: http://economia.uniroma2.it/faculty/104/farina-vincenzo

Franco Fiordelisi

University of Essex - Essex Business School ( email )

Wivenhoe Park
Colchester, CO4 3SQ
United Kingdom

University of Rome III, Italy ( email )

Via Silvio D'amico, 77
Rome, Rome 00145
Italy

HOME PAGE: http://host.uniroma3.it/docenti/fiordelisi/?home

Paola Schwizer

University of Parma ( email )

Via J.F. Kennedy 6
Parma, 43100
Italy

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