We identify creative companies by means of a textual analysis that hinges on the competing values framework. We show that a creative corporate culture is an important driver of innovation, as measured by the number of patents as well as the patents' importance as captured by patents' citations and market values. A portfolio of creative companies earns significantly positive annual four-factor alphas. We quantify potential biases that could be induced by the omission of relevant variables by formally examining coefficient movements after inclusion of controls.
|Article number||UNSP 101137|
|Journal||Journal of International Financial Markets, Institutions and Money|
|Publication status||Published - Nov 2019|
- corporate culture
- creative companies
- textual analysis
Fiordelisi, F., Renneboog, L., Ricci, O., & Lopes, SS. (2019). Creative corporate culture and innovation. Journal of International Financial Markets, Institutions and Money, 63, [UNSP 101137]. https://doi.org/10.1016/j.intfin.2019.101137