{"title":"Does corporate integrity affect firm efficiency?","authors":"Giang Thi Minh Vu, Minh-Huyen Dao, Khanh Hoang","doi":"10.1016/j.bir.2024.12.018","DOIUrl":null,"url":null,"abstract":"<div><div>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.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 1","pages":"Pages 94-106"},"PeriodicalIF":7.1000,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Borsa Istanbul Review","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S221484502400173X","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
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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.
期刊介绍：
Peer Review under the responsibility of Borsa İstanbul Anonim Sirketi. Borsa İstanbul Review provides a scholarly platform for empirical financial studies including but not limited to financial markets and institutions, financial economics, investor behavior, financial centers and market structures, corporate finance, recent economic and financial trends. Micro and macro data applications and comparative studies are welcome. Country coverage includes advanced, emerging and developing economies. In particular, we would like to publish empirical papers with significant policy implications and encourage submissions in the following areas: Research Topics: • Investments and Portfolio Management • Behavioral Finance • Financial Markets and Institutions • Market Microstructure • Islamic Finance • Financial Risk Management • Valuation • Capital Markets Governance • Financial Regulations
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