Does corporate culture shape “Tone at the Top”? Evidence from earnings calls

Man Dang, Premkanth Puwanenthiren, Edward Jones, Nguyen Bui and Thuy Dung Le

Finance Research Letters, 2024, vol. 59, issue C

Abstract: This study investigates how corporate culture affects the tone of managerial communications. Using data from earnings calls of U.S.-listed firms over 2001–2021, we find firms with strong culture values characterized by innovation, integrity, quality, respect, and teamwork experience more positive tone. Our findings remain unchanged after addressing endogeneity and the use of entropy balancing approach. Further, the culture-tone relationship is more pronounced in weak information and governance environments. Overall, this study provides insights on the benefits of promoting a strong corporate culture.

Keywords: Corporate culture; Management tone; Earnings calls; Information and governance environments; Earnings quality; Machine learning (search for similar items in EconPapers)
JEL-codes: G12 G14 G32 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:59:y:2024:i:c:s154461232301070x

DOI: 10.1016/j.frl.2023.104698

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