Corporate Culture In A New Era: Views From The C-suite

46 Pages Posted: 2 Feb 2024

See all articles by John R. Graham

John R. Graham

Duke University; National Bureau of Economic Research (NBER)

Jillian Grennan

University of California, Berkeley, Haas School of Business, Institue for Business and Social Impact

Campbell R. Harvey

Duke University - Fuqua School of Business; National Bureau of Economic Research (NBER)

Shivaram Rajgopal

Columbia University - Columbia Business School, Accounting, Business Law & Taxation

Date Written: November 1, 2023

Abstract

We review a decade's worth of insights from CFOs and CEOs across North America to establish the importance of corporate culture in driving firm value and as a cornerstone of organizational resilience and adaptability in the evolving business landscape. Through extensive surveys and interviews, we unveil how culture, often overshadowed by easier-to-calculate financial metrics, is a critical, intangible asset that influences employee motivation, retention, and ethical behavior. The research underscores culture's role in mergers and acquisitions, risk-taking, and long-term strategic focus, advocating for a deliberate, leadership-driven cultivation of corporate culture. This study not only highlights the necessity for academic and practical reassessment of corporate culture's impact but also calls for a strategic integration of cultural considerations in corporate governance and performance evaluation moving forward.

Keywords: Corporate culture, Valuation, Finance, Cultural values, Social norms, Leadership, Corporate governance, Incentive compensation, Finance function, Intangible Assets, Risk-taking, Short-termism, Myopia, Innovation, Firm value, Productivity, M\&A valuation, Integrity, Trust, Ethics, Compliance, Earning

JEL Classification: G3, Z1, D23, G23, G30, K22, M14, O16.

Suggested Citation

Graham, John Robert and Grennan, Jillian and Harvey, Campbell R. and Rajgopal, Shivaram, Corporate Culture In A New Era: Views From The C-suite (November 1, 2023). Available at SSRN: https://ssrn.com/abstract=4714093 or http://dx.doi.org/10.2139/ssrn.4714093

John Robert Graham

Duke University ( email )

Box 90120
Durham, NC 27708-0120
United States
919-660-7857 (Phone)
919-660-8030 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Jillian Grennan (Contact Author)

University of California, Berkeley, Haas School of Business, Institue for Business and Social Impact ( email )

Berkeley, CA 94720
United States

Campbell R. Harvey

Duke University - Fuqua School of Business ( email )

Box 90120
Durham, NC 27708-0120
United States
919-660-7768 (Phone)

HOME PAGE: http://www.duke.edu/~charvey

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Shivaram Rajgopal

Columbia University - Columbia Business School, Accounting, Business Law & Taxation ( email )

3022 Broadway
New York, NY 10027
United States

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