A0315
Title: Culture counts: Exploring firm performance through machine-learning based corporate culture in Thailand
Authors: Tanakorn Likitapiwat - Chulalongkorn University (Thailand) [presenting]
Abstract: A comprehensive Thai-specific corporate culture dictionary is constructed, using word embedding machine learning techniques, and the relationship is explored between the text-based corporate culture and firm performance for all Thai listed firms over the period of 2000 to 2021. A positive effect of corporate culture is found on firm performance such that a one standard deviation rise in corporate culture improves firm performance by 9\%. Results also demonstrate that all five elements of corporate culture significantly drive Thai firms' performance; However, the effect is in the following order from highest to lowest: Teamwork, respect, innovation, quality, and integrity. Additional analyses also indicate that a strong culture, except for innovation and integrity, insulates Thai firms from the adverse effects of the 2008 global financial crisis on firm performance. Findings are robust to various tests, including a two-stage least squares instrumental variable approach, propensity score matching, entropy balancing, and lagged regression analysis. Finally, business cultures unique to the Thai context are highlighted, prioritizing a corporate culture centered on teamwork and respect, as opposed to Western culture, which places emphasis on innovation and integrity.
