The Value of Corporate Culture

The Value of Corporate Culture

Luigi Guiso, Paola Sapienza, Luigi Zingales

NBER Working Paper No. 19557
Issued in October 2013
We study which dimensions of corporate culture are related to a firm’s performance and why. We find that proclaimed values appear irrelevant. Yet, when employees perceive top managers as trustworthy and ethical, firm’s performance is stronger. We then study how different governance structures impact the ability to sustain integrity as a corporate value. We find that publicly traded firms are less able to sustain it. Traditional measures of corporate governance do not seem to have much of an impact.

About bambooinnovator
KB Kee is the Managing Editor of the Moat Report Asia (, a research service focused exclusively on highlighting undervalued wide-moat businesses in Asia. The Moat Report Asia’s paid-subscribers from North America, Europe, the Oceania and Asia include professional value investors with over $20 billion in asset under management in equities, some of the world’s biggest secretive global hedge fund giants, and savvy private individual investor who are lifelong learners in the art of value investing. KB has presented his thought leadership as a keynote speaker in global investing conferences. KB has trained CEOs, entrepreneurs, CFOs, management executives in business strategy, value investing, macroeconomic and industry trends, and detecting accounting frauds in Singapore, HK and China. KB was the head of research and fund manager at a Singapore-based value investment firm since 2002. As a member of the investment committee, he helped the firm’s Asia-focused equity funds significantly outperform the benchmark index. KB was formerly the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. KB had also taught accounting courses at the Singapore Management University, where he launched the pioneered the module of Accounting Fraud in Asia. KB is currently the Chief Investment Officer at 8I Investments, a wholly-owned subsidiary of ASX-listed 8I Holdings Ltd (ASX: 8IH).

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