Should Investors Care About Corporate Culture? In this episode, hosts Kate Holland and Veljko Fotak delve into the significance of corporate culture and its impact on firm performance and investor portfolios. They discuss the struggle to measure corporate culture, using examples like Steve Jobs at Apple where storytelling helped create an innovative environment. The conversation extends to whether cultural aspects of respect, integrity, teamwork, innovation, and quality influence profitability. They explore research linking corporate culture with stock returns, fraud prevention, and adaptability. The discussion also covers the influence of societal culture on corporate behavior and how factors like regulatory changes and leadership shifts affect corporate culture. They conclude by suggesting that investors should be cautious of firms showing reduced innovation, high-risk cultures, or inconsistent communication of their corporate values. Timeline: 00:00 Culture, Stories, and Shared Beliefs 06:37 Welcome to Questions in Finance 07:15 Defining Corporate Culture 12:32 Corporate Culture and Intangible Assets 23:44 Country-level Cultural Traits and Corporate Culture 31:36 Changing Corporate Culture 36:37 Strategic Communication of Cultural Values 46:07 Corporate Culture and Firm Performance 51:27 Fraudulent Firms and Market Penalties 59:32 Risk Culture in Banks 01:02:43 Parking Tickets 01:11:16 Measuring Corporate Culture 01:14:31 Culture Examples: Skechers, Nike, Kodak, Xerox, Sony and More... 01:27:03 Summary & Goodbye! For complete show notes, please see: https://questionsinfinance.podbean.com/