Stock market liberalization and corporate investment revisited: Evidence from China
Li, Zhisheng; Liu, Chun; Ni, Xiaoran; Pang, Jiaren
JOURNAL OF BANKING & FINANCE Year: 2024 Volume: 158.0
DOI: 10.1016/j.jbankfin.2023.107053
Abstract: This paper constructs a novel corporate culture index for Chinese enterprises based on the text material of management discussion and analysis (MD&A). We examine the role of Chinese corporate culture in affecting company performance in China. Empirical results reveal a pronounced positive correlation between corporate culture values and company performance, indicating that a strong corporate culture significantly enhances company performance. In addition, further discussions show that culture values can have a larger effect on company performance when a company promotes innovation, and owns more intangible assets. This paper attempts to provide new insights on corporate culture and company performance, which can be critical for understanding the dynamics of company behavior and strategic decision-making in emerging markets.
