Corporate culture, innovation, and female board representation: Evidence from earnings conference calls

Likitapiwat, Tanakorn; Treepongkaruna, Sirimon; Jiraporn, Pornsit; Uyar, Ali

doi:10.2139/ssrn.4192014

Cited by 6 publications

(9 citation statements)

References 86 publications

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“…In addition, we apply Oster’s (2019) insight to verify that our results are not impacted by the omitted-variable bias by calculating the size of the unobservables’ influence required to exceed the effect of the observables, which would render our conclusions less reliable (Chintrakarn et al , 2020; Likitapiwat et al , 2022a, 2022b). Using Oster’s (2019) approach on our regressions in Model 2 of Table 2, we determine that the influence of the unobservables must be greater than 4.01 times that of the observables for our results to be questionable.…”

Section: Resultsmentioning

confidence: 99%

Asset redeployability, sustainability, and managerial prudence: evidence from economic policy uncertainty

Chatjuthamard,

Papangkorn,

Jiraporn

et al. 2023

IJAIM

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Purpose The purpose of this study is to shed light on the impact of economic policy uncertainty (EPU) on asset redeployability. Capitalizing on a novel measure of asset redeployability, the authors explore the effect of economic policy uncertainty (EPU) on redeployable assets using a unique text-based measure of EPU. Asset redeployability is an important aspect of sustainability that has been largely overlooked. More redeployable assets can be repurposed for a variety of uses, lessening the necessity for new products and thus conserving natural resources. Design/methodology/approach In addition to the standard regression analysis, the authors execute a variety of robustness checks, i.e. propensity score matching, entropy balancing, instrumental-variable analysis, GMM dynamic panel data analysis and use Oster’s (2019) approach for testing coefficient stability. Importantly, the authors incorporate firm fixed effects in the analysis, which helps mitigate endogeneity due to unobservable firm characteristics. Findings Based on an immense sample of over 200,000 observations over three decades, the results reveal that greater uncertainty raises asset redeployability significantly. The findings corroborate the managerial prudence hypothesis. The future deployment of assets is less predictable in times of increased uncertainty. Consequently, during uncertain times, it is more prudent to have assets that can be redeployed for multiple purposes. Originality/value To the best of the authors’ knowledge, this is the first study to explore the impact of EPU on asset redeployability, which is a critical aspect of sustainability that has rarely been investigated in the literature. The authors fill this important void in the literature. The authors extend the literature in EPU, asset redeployability as well as sustainability.

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Section: Resultsmentioning

confidence: 99%

Asset redeployability, sustainability, and managerial prudence: evidence from economic policy uncertainty

Chatjuthamard,

Papangkorn,

Jiraporn

et al. 2023

IJAIM

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“…Innovation is of paramount importance. According to a 2015 OECD study, innovation accounts for approximately 50% of a country’s overall GDP growth, with the effects varying by economic development stage (He and Tian, 2018; Likitapiwat et al , 2022). According to economic researchers, technical innovation is responsible for around 85% of a nation’s economic growth (He and Tian, 2018; Likitapiwat et al , 2022).…”

Section: Pertinent Research and Hypothesis Developmentmentioning

confidence: 99%

“…According to a 2015 OECD study, innovation accounts for approximately 50% of a country’s overall GDP growth, with the effects varying by economic development stage (He and Tian, 2018; Likitapiwat et al , 2022). According to economic researchers, technical innovation is responsible for around 85% of a nation’s economic growth (He and Tian, 2018; Likitapiwat et al , 2022). According to Xu (2020), innovation is influenced by a variety of economic forces, including the development of financial markets (Hsu et al , 2014), access to equity markets (Acharya and Xu, 2017), credit supply (Chava et al , 2013; Cornaggia et al , 2015), organizational form (Li et al , 2018) and legislation and judicial frameworks (Francis et al , 2018).…”

Section: Pertinent Research and Hypothesis Developmentmentioning

confidence: 99%

“…Earnings calls, as an effective external communication platform, mainly involve CEOs (and sometimes CFOs) speaking to financial analysts and often express a company's set of values (Graham et al, 2022;Li et al, 2021aLi et al, , 2021b. This machine learning-based technique has recently been embraced in the literature (Li et al, 2021a(Li et al, , 2021bOngsakul et al, 2021;Likitapiwat et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

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Climate change and corporate culture of innovation: evidence from earnings conference calls

Ongsakul,

Chintrakarn,

Jiraporn

et al. 2024

PAR

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Purpose Exploiting novel measures of climate change exposure and corporate culture generated by a powerful textual analysis of earnings conference calls, this study aims to explore the effect of firm-specific climate change exposure on corporate innovation through the lens of corporate culture. Design/methodology/approach The authors apply the standard regression analysis as well as a variety of sophisticated techniques, namely, propensity score matching, entropy balancing and an instrumental-variable analysis with multiple alternative instruments. Findings The authors find that more exposure to climate change risk results in more innovation, as indicated by a significantly stronger culture of innovation. The findings are consistent with the notion that firms more exposed to climate change risk are pressed to be more innovative to adapt to the numerous changes caused by climate change. Finally, the authors also find that the effect of firm-level exposure on innovation is considerably less pronounced during uncertain times. Originality/value The authors are among the first studies to take advantage of a novel measure of firm-specific exposure to climate change and investigate how climate change exposure influences an innovative culture. Since climate change is a timely issue, the findings offer important implication to several stakeholders, such as shareholders, executives and investors in general.

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“…1. Additional recent studies on corporate culture are Chindasombatcharoen et al (2023), Wongsinhirun et al (2023), Likitapiwat et al (2022) and Ongsakul et al (2021a).…”

Section: Notesmentioning

confidence: 99%

Corporate culture, innovation and board size: recent evidence from machine learning and earnings conference calls

Chatjuthamard

Jiraporn

2023

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Purpose Taking advantage of a novel measure of innovative culture generated by advanced machine learning, this study aims to investigate how a culture of innovation is influenced by a crucial aspect of the board of directors, i.e. board size. The data on corporate culture of innovation are based on a textual analysis of earnings conference calls and represent a unique approach to capturing corporate culture. Design/methodology/approach In addition to the standard regression analysis, the authors also perform several sophisticated robustness checks, such as propensity score matching, entropy balancing, an instrumental-variable analysis, Oster’s (2019) method for testing coefficient stability, GMM dynamic panel data analysis and Lewbel’s (2012) heteroscedastic identification. Findings Corroborating the prediction of the resource dependence theory, the study results show that larger boards promote an innovative culture more effectively. A larger board with more directors provides the firm with additional resources, expertise and abilities, enabling it to develop an innovative culture more successfully. Originality/value This study is the first to examine the effect of board size on innovation using data on corporate culture generated by sophisticated computer algorithms. The authors advance the literature both in corporate governance and corporate innovation.

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Corporate culture, innovation, and female board representation: Evidence from earnings conference calls

Cited by 6 publications

References 86 publications

Asset redeployability, sustainability, and managerial prudence: evidence from economic policy uncertainty

Asset redeployability, sustainability, and managerial prudence: evidence from economic policy uncertainty

Climate change and corporate culture of innovation: evidence from earnings conference calls

Corporate culture, innovation and board size: recent evidence from machine learning and earnings conference calls

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