Abstract / Description of output
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.
Original language | English |
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Article number | 106710 |
Number of pages | 26 |
Journal | Journal of Banking and Finance |
Volume | 146 |
Early online date | 26 Oct 2022 |
DOIs | |
Publication status | Published - Jan 2023 |
Keywords / Materials (for Non-textual outputs)
- corporate culture
- competing values framework
- textual analysis
- financial crisis
- abnormal returns
- firm stability