There is zero correlation between the prominence of corporations’ values (as touted online) and the firms’ performance, says a team led by Luigi Guiso of the Einaudi Institute for Economics and Finance in Italy. What matters instead is employees’ assessments of companies’ integrity. High levels of perceived integrity are associated with higher productivity and profitability; a 1-standard-deviation increase in integrity is associated with a 0.19-standard-deviation increase in a firm’s Tobin’s Q ratio.

(Source: Journal of Financial Economics)

Published in Dawn, Economic & Business July 27th, 2015

On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play

Opinion

Editorial

‘Source of terror’
29 Mar, 2024

‘Source of terror’

ALTHOUGH dealing with the presence of terrorist groups in Afghanistan is a major political, security and strategic...
Chipping in
29 Mar, 2024

Chipping in

FEDERAL infrastructure development schemes are located in the provinces. Most such projects — for instance,...
Toxic emitters
29 Mar, 2024

Toxic emitters

IT is concerning to note that dozens of industries have been violating environmental laws in and around Islamabad....
Judiciary’s SOS
Updated 28 Mar, 2024

Judiciary’s SOS

The ball is now in CJP Isa’s court, and he will feel pressure to take action.
Data protection
28 Mar, 2024

Data protection

WHAT do we want? Data protection laws. When do we want them? Immediately. Without delay, if we are to prevent ...
Selling humans
28 Mar, 2024

Selling humans

HUMAN traders feed off economic distress; they peddle promises of a better life to the impoverished who, mired in...