Insight

What ties culture with return

Does your company’s setup and corporate culture affect your success

How much does your company’s setup and corporate culture affect your success? Researchers Zhaorui Guo, Kam C Chan and Yunkui Xue analysed these concepts in a large sample of Chinese companies and found that in terms of stock return, cash flows, earnings and sales growth and turnover, corporate culture showed a positive effect on the performance of the company, including staving off the side effects of missing earnings benchmarks. Reason enough for firms to take stock?

Title: The Impact of Corporate Culture on Performance: A Quasi-Quantitative Approach

Source: Social Science Research Network