Corporate Culture, Special Items, and Firm Performance

S. Thomas Kim () and Li Sun
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S. Thomas Kim: Collins College of Business, The University of Tulsa, Tulsa, OK 74104, USA
Li Sun: Collins College of Business, The University of Tulsa, Tulsa, OK 74104, USA

IJFS, 2024, vol. 12, issue 3, 1-21

Abstract: This study analyzes the relationship between corporate culture, the likelihood of reporting special items, and firm performance. We find a significant negative relation between corporate culture and special items using more than 55,000 firm-year observations from 6931 U.S. corporations between 2002 and 2021. The result suggests that firms with strong corporate cultures are less likely to use and report special items. Firms with lower performance mainly drive the negative relation; the pattern indicates that firms with weaker corporate cultures are prone to manage earnings using special items.

Keywords: corporate culture; special items; earnings management (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2024
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