An empirical investigation of corporate culture and productivity using textual analysis approach

We investigate the impact of corporate culture on firm productivity using textual analysis of earnings calls. Employing the Ackerberg-Caves-Frazer (2015) control-function approach and a shift-share instrument exploiting regional social capital, we find a robust positive causal effect. However, this effect is not uniform: productivity gains are driven specifically by innovation and quality. Validation against Glassdoor reviews confirms that innovation measures reflect “lived” culture, while teamwork may represent strategic signaling. The findings suggest that specific cultural attributes, rather than generalized culture, are key drivers of productivity.