Corporate culture and the bottom line

Eric Flamholtz

European Management Journal, 2001, vol. 19, issue 3, 268-275

Abstract: The paper deals with the effects of corporate culture on financial performance. Previous authors have suggested that culture has an impact on financial performance. Unlike previous studies which have only examined the effects of culture on financial performance using cross sectional data, this study was done in a single organization. The company had twenty relatively comparable divisions, and provides a somewhat rare, if not unique, opportunity to assess the effects of corporate culture on financial performance. The results, using a regression analysis, suggest that there is a statistically significant relationship (at 0.05 level) between culture and financial performance (measured by 'EBIT,' or earnings before interest and taxes). Thus these results provide support for the previously hypothesized relationship between culture and financial performance with significant implications for management theory and practice

Keywords: Corporate; culture; Organizational; performance; Financial; performance (search for similar items in EconPapers)
Date: 2001
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0263237301000238
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eurman:v:19:y:2001:i:3:p:268-275

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/115/bibliographic
http://www.elsevier. ... me/115/bibliographic

Access Statistics for this article

European Management Journal is currently edited by Michael Haenlein

More articles in European Management Journal from Elsevier
Bibliographic data for series maintained by Catherine Liu ().