Corporate Culture and Firm Value: Evidence from Crisis

2020 ◽  
Author(s):  
Yiwei Fang ◽  
Franco Fiordelisi ◽  
Iftekhar Hasan ◽  
Woon Sau Leung
Keyword(s):  
Corporate Culture ◽  
Firm Value

The Effect of Corporate Culture on the Firm Value and the Performance

2018 ◽  
Vol 27 (1) ◽  
pp. 157-189
Author(s):  
Hyung Jong Na ◽  
Sung Ook Park ◽  
June Q Lee ◽  
Hee-yeon Sunwoo
Keyword(s):  
Corporate Culture ◽  
Firm Value

scholarly journals The Relationship between Corporate Culture and Value at Different Life Cycle Stages

2021 ◽  
Vol 13 (4) ◽  
pp. 2334
Author(s):  
Sung Ook Park ◽  
Seung Uk Choi ◽  
Seong Tae Kim ◽  
Hyung Jong Na
Keyword(s):  
Life Cycle ◽  
Corporate Culture ◽  
Firm Value ◽  
Environmental Changes ◽  
Competing Values Framework ◽  
Competing Values ◽  
Operational Environment ◽  
External Focus ◽  
Life Cycle Stages ◽  
Positive Effect

Despite the general agreement that a firm embodies its own culture, there is still a lack of empirical research on how a firm’s culture affects its value. Another caveat on previous studies is that they implicitly assume that a firm’s culture does not vary over time. In this paper, we examine the following two questions to address this lack: (1) Does a firm’s culture affect the firm’s value? (2) If a firm’s culture varies at different life cycle stages, do these changes have an impact on firm value? By using a competing values framework, we identify four types of corporate culture—adhocracy, market, clan, and hierarchy—and use life cycle stages to proxy for changes in a firm’s environment. The results reveal that adhocracy culture has a positive effect on a firm’s value. In contrast, we find a negative association between hierarchy culture and a firm’s value. This can be interpreted as the features of adhocracy culture, which gives autonomy to its members (flexible and discretion) and keeps challenging a firm to grow (external focus and differentiation), positively impacting firm value more than the other cultures. Furthermore, at a growth stage in which a firm faces dynamic environmental changes, both adhocracy and clan cultures have an incrementally positive effect on firm value. This implies that firms in mature or decline stages lose dynamic changes in their operational environment, therefore, the effect of culture on firm value is restricted in those stages.

scholarly journals MANAJEMEN RISIKO BERBASIS SPIRITUAL ISLAM

2012 ◽  
Vol 16 (2) ◽  
pp. 184 ◽  
Author(s):  
Nur Khusniyah Indrawati ◽  
Ubud Salim ◽  
Djumilah Hadiwidjojo ◽  
Nur Syam
Keyword(s):  
Risk Management ◽  
Corporate Culture ◽  
Firm Value ◽  
Management Practices ◽  
Single Case ◽  
Boarding School ◽  
Business Manager ◽  
Spiritual Power ◽  
Entrepreneurial Spirit ◽  
Islamic Values

This study aims to explore and understand: (1) Kyai  (Islamic boarding school leader) and business manager perception to risk management, and (2) implementation Islamic values in business and risk management, (3) Kyai and business manager perception to corporate value creation, and ( 4) distribution of firm value to stakeholders. Research setting is business at Sunan Drajat boarding school, Lamongan. This study uses postpositivist, theology, and intuitive approach. The study design was an interpretative case study using "single case" type. The analysis method of this study is the Interactive Model from Miles and Huberman. The results showed that: (1) Risk management is process to eliminate the risk with strong intention as essence that underlying the risk management practices and the presence of spiritual power, a khusnuzhzhan (good perception) to Allah SWT, based on maslahah (goodness) that come down to falah, (2) The implementation of Islamic values into business activity framework has been proven the business growing rapidly. Even at the end, the Islam value 'an taraadhin minkum become central value which evolved into the corporate culture. Islamic values related to risk management demonstrate the existence of a true entrepreneurial spirit for entire management. (3) The firm  value that created from risk management practices indicate the aspects of material/economic and immaterial. The application has been able to provide welfare and happiness for body and soul of all stakeholders, (4) Then, the firm value was distributed to all stakeholders, both for the human and nature benefit as a manifestation of maslahah (goodness) that become the objectives of business establishment.

Measuring Corporate Culture Using Machine Learning

2020 ◽  
Author(s):  
Kai Li ◽  
Feng Mai ◽  
Rui Shen ◽  
Xinyan Yan
Keyword(s):  
Machine Learning ◽  
Cultural Values ◽  
Corporate Culture ◽  
Firm Value ◽  
Machine Learning Techniques ◽  
Business Outcomes ◽  
Corporate Innovation ◽  
Learning Techniques ◽  
Innovative Culture ◽  
Compensation Design

Abstract We create a culture dictionary using one of the latest machine learning techniques—the word embedding model—and 209,480 earnings call transcripts. We score the five corporate cultural values of innovation, integrity, quality, respect, and teamwork for 62,664 firm-year observations over the period 2001–2018. We show that an innovative culture is broader than the usual measures of corporate innovation – R&D expenses and the number of patents. Moreover, we show that corporate culture correlates with business outcomes, including operational efficiency, risk-taking, earnings management, executive compensation design, firm value, and deal making, and that the culture-performance link is more pronounced in bad times. Finally, we present suggestive evidence that corporate culture is shaped by major corporate events, such as mergers and acquisitions.

Global CSR, drivers and consequences: a systematic review

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kwasi Dartey-Baah ◽  
George Kofi Amoako
Keyword(s):  
Systematic Review ◽  
Social Responsibility ◽  
Financial Performance ◽  
Corporate Culture ◽  
Firm Value ◽  
Cross Sectional ◽  
Content Type ◽  
Share Prices ◽  
Sustainable Solutions ◽  
Firm Financial Performance

Purpose The purpose of this paper is to provide a systematic review of research studies on the drivers and consequences of corporate social responsibility (CSR). Design/methodology/approach This paper used a systematic literature review using research papers published on the drivers and consequence of global CSR from 2010 to 2020. Findings The findings of this paper show that the principal themes of published research articles on the drivers and consequences of CSR are internal drivers, external drivers and consequences of CSR. Publications on the drivers and consequences of global CSR have been dominated by studies that used quantitative approach and cross-sectional design. A significant number of studies also used secondary data source with most of these studies not being sensitive to sectorial influences. More importantly, this study revealed that the emphasis of CSR on actions that demonstrate social responsibility is more associated with overall financial performance and firm value when contrasted against ethical statements of social responsibility which is associated with weaker firm financial performance and outcomes. Moreover the review indicated that the level of CSR engagement and disclosure has been associated with higher share prices whereas low level of CSR disclosure in sensitive industries results in lower share prices. In addition, employees’ intention has been identified as a critical driver for CSR activities. Furthermore, it was also identified that firms engage in CSR because of internal institutional factors such as ethical corporate culture and top management commitment, whereas external drivers of CSR include socio-political factors, globalisation and environmental accountability. Practical implications CSR is an area that can be harnessed to contribute to sustainable solutions to global challenges. It also provides an added advantage of ensuring that the perpetuation of the relationship between businesses and society are more complementary. Originality/value This review is one of the few studies focussed on highlighting the drivers and consequences of global CSR. This review also provides proof of the areas of research that need attention and provides recommendation on future areas of study on the drivers and consequences of global CSR.

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