Corporate Purpose and Financial Performance

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dc.contributor.authorGartenberg, Claudine Madras
dc.contributor.authorPrat, Andrea
dc.contributor.authorSerafeim, George
dc.date2023-05-17T19:16:08.000
dc.date.accessioned2023-05-22T23:54:35Z
dc.date.available2023-05-22T23:54:35Z
dc.date.issued2016-06-30
dc.date.submitted2018-02-01T19:28:20-08:00
dc.description.abstractWe construct a measure of corporate purpose within a sample of US companies based on approximately 500,000 survey responses of worker perceptions about their employers. We find that this measure of purpose is not related to financial performance. However, high purpose firms come in two forms: firms that are characterized by high camaraderie between workers and firms that are characterized by high clarity from management. We document that firms exhibiting both high purpose and clarity have systematically higher future accounting and stock market performance, even after controlling for current performance, and that this relation is driven by the perceptions of middle management and professional staff rather than senior executives, hourly or commissioned workers. Taken together, these results suggest that firms with employees that maintain strong beliefs in the meaning of their work experience better performance.
dc.identifier.urihttps://repository.upenn.edu/handle/20.500.14332/40417
dc.legacy.articleid1208
dc.legacy.fulltexturlhttps://repository.upenn.edu/cgi/viewcontent.cgi?article=1208&context=mgmt_papers&unstamped=1
dc.source.issue274
dc.source.journalManagement Papers
dc.source.journaltitleColumbia Business School Research Paper No. 16-69
dc.source.statuspublished
dc.subject.othercorporate purpose
dc.subject.otherperformance
dc.subject.otheremployee engagement
dc.subject.otherwork meaning
dc.subject.otherManagement Sciences and Quantitative Methods
dc.titleCorporate Purpose and Financial Performance
dc.typeWorking Paper
digcom.contributor.authorGartenberg, Claudine Madras
digcom.contributor.authorPrat, Andrea
digcom.contributor.authorSerafeim, George
digcom.identifiermgmt_papers/274
digcom.identifier.contextkey11468025
digcom.identifier.submissionpathmgmt_papers/274
digcom.typeworkingpaper
dspace.entity.typePublication
upenn.schoolDepartmentCenterManagement Papers
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