46 Pages Posted: 15 Nov 2013 Last revised: 30 Aug 2014
Date Written: September 1, 2013
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.
Suggested Citation: Suggested Citation
Guiso, Luigi and Sapienza, Paola and Zingales, Luigi, The Value of Corporate Culture (September 1, 2013). Chicago Booth Research Paper No. 13-80; Fama-Miller Working Paper. Available at SSRN: https://ssrn.com/abstract=2353486 or http://dx.doi.org/10.2139/ssrn.2353486
By Tobias Berg
By René Stulz