Corporate culture and firm value: Evidence from crisis

Yiwei Fang, Franco Fiordelisi, Iftekhar Hasan, Woon Sau Leung*, Gabriel Wong

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

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 languageEnglish
Article number106710
Number of pages26
JournalJournal of Banking and Finance
Early online date26 Oct 2022
Publication statusPublished - Jan 2023

Keywords / Materials (for Non-textual outputs)

  • corporate culture
  • competing values framework
  • textual analysis
  • financial crisis
  • abnormal returns
  • firm stability


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