Abstract
This study investigates how corporate culture affects the tone of managerial communications. Using data from earnings calls of U.S.-listed firms over 2001–2021, we find firms with strong culture values characterized by innovation, integrity, quality, respect, and teamwork experience more positive tone. Our findings remain unchanged after addressing endogeneity and the use of entropy balancing approach. Further, the culture-tone relationship is more pronounced in weak information and governance environments. Overall, this study provides insights on the benefits of promoting a strong corporate culture.
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