Renewing Strength: Corporate Culture Revisited

Renewing Strength: Corporate Culture Revisited

M@n@gement is a double-blind reviewed journal where articles are published in their original language as soon as they have been accepted. Copies of this article can be made free of charge and without securing permission, for purposes of teaching, research, or library reserve. Consent to other kinds of copying, such as that for creating new works, or for resale, must be obtained from both the jo...

The Corporate Objective Revisited

The stock market convulsions and corporate scandals of 2001 and 2002 have reignited debate on the purposes of the corporation and, in particular, the goal of shareholder value maximization. We revisit the debate, re-examine the traditional rationales, and develop a set of new arguments for why the preferred objective function for the corporation must unambiguously continue to be the one that sa...

Corporate Lobbying Revisited

Corporate Risk Culture∗

We examine the formation and evolution of corporate risk culture, defined as the preferences towards risk and uncertainty shared by a firm’s leaders, as well as its effect on corporate policies. Commonality in risk attitudes inside the firm arises through the selection of managers and directors with similar attitudes towards risk and uncertainty. Selection also leads to persistence in corporate...

Corporate Culture, Societal Culture, and Institutions

While both cultural and legal norms (institutions) help foster cooperation, culture is the more primitive of the two and itself sustains formal institutions. Cultural changes are rarer and slower than changes in legal institutions, which makes it difficult to identify the role played by culture. Cultural changes and their effects are easier to identify in simpler, more controlled, environments,...