Political Risk and Corporate Culture: Evidence from Firm-Level Dynamics

This study examines the effect of firm-level political risk on corporate culture. Using a panel of U.S. publicly listed firms from 2003 to 2021, the analysis shows that higher firm-level political risk is associated with stronger corporate culture traits, particularly integrity and teamwork. The results suggest that firms respond to political uncertainty by reinforcing internal cultural values. These findings are consistent across several robustness checks, including alternative measures and instrumental variable estimation. This study contributes to the literature on political economy and organizational behavior by demonstrating the strategic role of corporate culture in responding to the challenges posed by political uncertainty.