Does corporate integrity affect firm efficiency?
Year: 2024
Type: article
Abstract: This study investigates how corporate integrity influenced firm efficiency in the United States in 2001–2018. Based on a measure of corporate integrity computed by machine learning and a measure of firm efficiency generated by data envelopment analysis , the results of our multivariate regression suggest that greater corporate integrity is generally associated with higher firm efficiency. This finding indicates that in a more integral culture, firms can optimize the use of resources to generate revenues more efficiently. We identify corporate social responsibility engagement as a channel through which integrity positively impacts firm efficiency. Interestingly, hiring external CEOs does not seem to result in a significant change in firm efficiency in terms of corporate integrity, suggesting that importing culture into top management does not change the effect of corporate integrity on firm efficiency.
Source: Borsa Istanbul Review
Authors: Giang Thi Minh Vu, Minh-Huyen Dao, Khanh Hoang
Institution: University of Economics Ho Chi Minh City
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $1,500
OpenAlex ID: W4405835058