Corporate culture and firm value: evidence from crisis

Fang, Yiwei, Fiordelisi, Franco, Hasan, Iftekhar, Leung, Woon Sau and Wong, Gabriel 2023. Corporate culture and firm value: evidence from crisis. Journal of Banking and Finance 146 , pp. 1-26. 10.1016/j.jbankfin.2022.106710

PDF - Published Version Available under License Creative Commons Attribution. Download (1MB)

Abstract

Based on the Competing Values Framework (CVF), we score 10-K text to measure company culture in four types (collaborative, controlling, competitive, and creative) and examine its role in firm stability. We find that firms with higher controlling culture fared significantly better during the 2008–09 crisis. Firms with stronger controlling culture experienced fewer layoffs, less negative asset growth, greater debt issuance, and increased access to credit-line facilities during the crisis. The positive effect of the controlling culture is stronger among the financially-constrained firms. Overall, the controlling culture improves firm stability through greater support from capital providers.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Publisher:	Elsevier
ISSN:	0378-4266
Date of First Compliant Deposit:	13 April 2023
Date of Acceptance:	25 October 2022
Last Modified:	06 Jul 2023 19:34
URI:	https://orca.cardiff.ac.uk/id/eprint/158575

Citation Data

Cited 7 times in Scopus. View in Scopus. Powered By Scopus® Data

Actions (repository staff only)

Edit Item