Corporate culture and banking

Andreas Barth and Sasan Mansouri

Journal of Economic Behavior & Organization, 2021, vol. 186, issue C, 46-75

Abstract: This paper empirically analyzes the role of corporate culture in banking. We define culture based on the Competing Value Framework (Quinn and Rohrbaugh, 1983) and find that banks with a more pronounced competition-oriented culture have stronger bonus-focused compensation schemes. Banks with a strong focus on growth show higher stock returns and banks with a focus on stability show lower bankruptcy risk. These findings support various theories on bank culture (Thakor, 2012; Song and Thakor, 2019) and highlight the importance of corporate culture as a ‘softer’ aspects of governance to enhance banking stability.

Keywords: Corporate culture; Competing Value Framework; CEO Compensation; Stock returns; Bankruptcy risk (search for similar items in EconPapers)
JEL-codes: G21 G34 M14 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:186:y:2021:i:c:p:46-75

DOI: 10.1016/j.jebo.2021.02.010

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