Eagle Hill Consulting’s national workplace culture survey in the
US reveals that 63 percent of employees recognize the significant impact of
workplace culture on their organization’s overall success. This indicates the
importance of corporate culture for the entity’s success. This study examined
the effect of corporate culture (the availability of corporate pages on the
website of the company) on the corporate value (Tobin’s Q) of the companies
listed on the Indonesia Stock Exchange. It is cross-sectional and uses
secondary data extracted both from the company website and the financial reports
for the year 2019. There are 485 companies that met the selection criteria. To
test the hypothesis, cross-sectional ordinary least squares regression is used.
The results show that corporate culture has a modestly positive effect on
corporate value. The robustness test reveals that the finding is more
pronounced among small companies. The study also includes four other variables,
namely employee activities, employee training programs, honors earned, charity
programs, and return on assets as a control variable. The results show that two
variables, the honors earned and the number of charity programs, have a
significant positive effect on corporate value. Given the findings, we
recommend that the company discloses and promotes its corporate culture to inform
potential investors about its strong commitment to conducting business with a
specific culture. Future research could utilize survey-based data, a method
employed by several studies in recent days.
Author(s)
Details
Andreas
Faculty of Economics and Business, University Riau, Pekanbaru,
Riau, Indonesia.
Tatang
Ary Gumanti
Faculty of Business, University Katolik Widya Mandala Surabaya,
Jawa Timur, Indonesia.
Please see the book here:- https://doi.org/10.9734/bpi/bmerp/v2/1236
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