Corporate Culture: Evidence from the Field

Why do some firms generate great wealth for investors and offer innovative solutions to problems, while seemingly similar firms are much less successful?  Why do employees at some firms repeatedly act unethically, shocking their leaders with scandals, while seemingly similar employees at other firms are quick to blow the whistle on unethical actions?  One answer might be corporate culture.  While policymakers, executives, and the press often credit corporate culture with some of the greatest business successes and failures, there is limited large-scale evidence to support such arguments.  In our recent article, “Corporate Culture: Evidence from the Field,” available here, … Read more

A Corporate Culture Channel: How Increased Shareholder Governance Reduces Firm Value

The following comes to us from Jillian Popadak, an applied economics doctoral student in the Business Economics and Public Policy Department at Wharton, University of Pennsylvania.

Corporate governance affects firm value, capital productivity and economic growth. Given its economic importance, there has been an ongoing, nationwide movement to strengthen corporate governance over the past two decades. Yet details about the transmission mechanisms from governance to economic outcomes are not fully understood.  In “A Corporate Culture Channel: How Increased Shareholder Governance Reduces Firm Value,”  I examine whether increased governance affects firm value via its impact on intangible assets, and … Read more

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