The effect of organizational culture on financial performances of businesses

The aim of the research is to examine the effect of organizational culture on financial performance of the firms. The chemical, oil, rubber and plastic products industry in Borsa Istanbul Stock Exchange (BIST) was chosen as sample for this purpose. The study employs Denison Organization Culture Survey while 5-years financial data were collected from financial statements of companies in the BIST chemical industry. In this context the dependent variable is Return On Equity (ROE) while Return On Asset (ROA) and Total Debt to Total Equity Ratio were used as explanatory financial variables as well as firm size and firm age were selected as business-specific variables. According to the results three of four major organizational culture traits; involvement, consistency, adaptability and also organizational culture itself by sum of four traits showed no significance on firm performance while mission trait aroused slightly limited significance on firm performance.