- Culture is the biggest off balance sheet asset of the company
- Leadership doesn’t always appreciate the value of corporate culture, and as a result often underinvests in it
- Employees implement what they see executives modeling, so “walking the talk” of the company’s stated values is critical
- Understanding and beginning to quantify corporate culture can be an edge for investors
Adapted from “Corporate Culture: Evidence from the Field,” by John R. Graham and Campbell R. Harvey of Duke University, Jillian Grennan of Santa Clara University, and Shivaram Rajgopal of the Columbia Business School.