Corporate Culture and Banking

45 Pages Posted: 23 Dec 2015 Last revised: 17 Jun 2018

See all articles by Andreas Barth

Andreas Barth

Goethe University Frankfurt - Department of Finance

Sasan Mansouri

Goethe University Frankfurt - Department of Finance

Date Written: January 12, 2016

Abstract

This paper empirically analyzes the role of corporate culture in banking. We define culture based on the Competing Value Framework (Quinn and Rohrbaugh, 1983) and find that banks with a more pronounced competition-oriented culture have stronger bonus-focussed compensation schemes, while banks with a strong focus on creativity show higher bankruptcy risk. These findings suggest that risk management practices are not merely driven by incentives from compensation schemes, but rather driven by differences in corporate culture.

Keywords: corporate culture; Competing Value Framework; CEO compensation; stock returns; bankruptcy risk.

JEL Classification: G21, G34, M14

Suggested Citation

Barth, Andreas and Mansouri, Sasan, Corporate Culture and Banking (January 12, 2016). Available at SSRN: https://ssrn.com/abstract=2707078 or http://dx.doi.org/10.2139/ssrn.2707078

Andreas Barth (Contact Author)

Goethe University Frankfurt - Department of Finance ( email )

Theodor-W.-Adorno-Platz 3
Frankfurt, 60629
Germany

Sasan Mansouri

Goethe University Frankfurt - Department of Finance ( email )

Grüneburgplatz 1
Frankfurt am Main, 60323
Germany
+49(0)6979833727 (Phone)

HOME PAGE: http://www.sasanm.ir

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