Fang, Yiwei and Fiordelisi, Franco and Hasan, Iftekhar and Leung, Woon Sau and Wong, Gabriel (2023) Corporate culture and firm value: Evidence from crisis. Journal of Banking and Finance, 146. p. 106710. DOI https://doi.org/10.1016/j.jbankfin.2022.106710
Fang, Yiwei and Fiordelisi, Franco and Hasan, Iftekhar and Leung, Woon Sau and Wong, Gabriel (2023) Corporate culture and firm value: Evidence from crisis. Journal of Banking and Finance, 146. p. 106710. DOI https://doi.org/10.1016/j.jbankfin.2022.106710
Fang, Yiwei and Fiordelisi, Franco and Hasan, Iftekhar and Leung, Woon Sau and Wong, Gabriel (2023) Corporate culture and firm value: Evidence from crisis. Journal of Banking and Finance, 146. p. 106710. DOI https://doi.org/10.1016/j.jbankfin.2022.106710
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 |
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Uncontrolled Keywords: | Corporate culture; Competing Values framework; Textual analysis; Financial crisis; Abnormal returns; Firm stability |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 04 Jan 2023 11:44 |
Last Modified: | 30 Oct 2024 20:53 |
URI: | http://repository.essex.ac.uk/id/eprint/33834 |
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