Using a sample of 1.5 million Glassdoor ratings, this study shows that perceptions of better corporate culture, as proxied by higher Glassdoor ratings, are associated with more accurate management forecasts. We hypothesize that one of the channels driving the association between corporate culture and forecast accuracy is a better internal information environment. To test this conjecture, we use a ChatGPT-based textual analysis of Glassdoor reviews to measure employee perceptions of firms’ internal information environments. We find that better internal information environments are associated with more accurate management forecasts, including when employees perceive a stronger organizational culture and better communication channels. Furthermore, we show that approximately 47 percent of the impact of Glassdoor ratings on management forecast accuracy is driven by the perceived internal information environment. Overall, this study sheds light on how corporate culture is linked with firm disclosure via better information-sharing within the organization.

Data Availability: Data are available via the source specified in the paper.

JEL Classifications:G17; J01; M40.

Keywords:
corporate culture, employee satisfaction, Glassdoor, management forecast, voluntary disclosure, ChatGPT, internal information environment
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2025