Director Interlocks and Spillover Effects of Reputational Penalties From Financial Reporting Fraud

Kang, Eugene

doi:10.5465/amj.2008.32626007

Cited by 235 publications

(214 citation statements)

References 94 publications

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“…In this manner, networks create a shared social environment (Weick & Roberts, 1993) where organizations convey the value of certain practices to others in the network (Hillman, Shropshire, & Cannella, 2007) regardless of whether or not the practices enhance or diminish social or environmental welfare (Kang, 2008;Pfarrer, Smith, Bartol, Khanin, & Zhang, 2008).…”

Section: Structural Elements: Board Networkmentioning

confidence: 99%

Exceptional boards: Environmental experience and positive deviance from institutional norms

2012

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SummaryThis paper explores the phenomenon of positive organizational deviance from institutional norms by establishing practices that protect or enhance the natural environment. Seeking to explain why some organizations practice positive environmental deviance while others do not, we locate our inquiry on the board of directors-the organizational body that interprets external issues and guides organizational response. We find a strong correlation between positive deviance and the past environmental experience of board directors and the centrality of the organization within field-level networks. Organizations located on the periphery of the network or whose boards possess a high level of environmental experience are more likely to deviate in positive ways. Our conclusions contribute to multiple literatures in behavioral and environmental governance, the role of filtering and enaction in the process of institutional conformity and change, and the mechanisms behind proactive environmental protection strategies within business.

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Section: Structural Elements: Board Networkmentioning

confidence: 99%

Exceptional boards: Environmental experience and positive deviance from institutional norms

2012

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“…Organizations that are new or in the process of being founded encounter difficulties because they lack a performance track record or reputation for delivering quality products (Freeman et al 1983). While incumbents find their abilities to obtain financial resources to be dependent on their reputation (Milgrom and Roberts 1986;Fombrun and Shanley 1990;Stuart et al 1999;Higgins and Gulati 2006;Kang 2008), new organizations, especially in the start-up phase, are restricted in their access to financial resources due to this lack of reputation. Earlier studies, however, show that the reputations of core members of an organization-not necessarily new-such as top management teams, have an impact on the reputation of the organization as a whole (Higgins and Gulati 2006;Cohen and Dean 2005).…”

Section: Discussionmentioning

confidence: 99%

“…While incumbents find their ability to obtain financial resources to be dependent on their reputation, new ventures are restricted in their access to financial resources due to a lack of reputation, (Milgrom and Roberts 1986;Fombrun and Shanley 1990;Stuart et al 1999;Higgins and Gulati 2006;Kang 2008). However, new organizations do have members, and the composition of early membership can contribute to the organization's corporate reputation.…”

Section: Reputations and Investment In New Venturesmentioning

confidence: 99%

The effects of having more than one good reputation on distributor investments in the film industry

Ebbers

Wijnberg

2012

J Cult Econ

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Reputations of organizations and its individual members are valuable resources that help new organizations to get access to investment capital. Reputations, however, can have different dimensions. In this paper, we argue that an individual's reputation along a particular dimension will have a positive effect on the behavior of investors when it is role congruent. In addition, we argue that also scoring favorably on the role-incongruent dimension at the same time-or, in other words, engaging in reputational category spanning-will weaken the positive effect of the role-congruent reputation. Our empirical setting is the film industry where we study the effect of the two main dimensions of reputation in cultural industries, artistic and commercial, of both directors and producers on the size of the investment by distributors. In this study, artistic reputation is based on professional critics' reviews and commercial reputation on box office performance of the films in which individuals were involved in the past. We find that the commercial reputation of a film producer based on past box office performance has a positive effect on the size of the investment by film distributors. In addition, we find that directors who at the same time combine both a favorable commercial as well as an artistic reputation actually receive a lower investment from film distributors.

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“…Normally, investors rely on data and official papers provided by the companies to make investment decisions (Kang, 2008;Sanders & Boivie, 2004). By adopting a diverse perspective linking board diversity to company performance, some studies have examined the market reactions to the appointment of women to the boards.…”

Section: The Appointment Of Women On Boards and Market Reactionsmentioning

confidence: 99%

The Market Reaction to the Appointment of Women on Corporate Boards: Evidence from the Italian Listed Companies

Pastore¹,

Tommaso²,

Ricciardi³

2017

IJBM

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During the 2012-2016 period, a large number of Italian companies appointed women directors in their boards, an unusual and unpredictable fact in the Italian industrial system. This paper investigates if any significant reaction has consequently occurred in the Italian stock market. It assumes that a significant market reaction would indicate the investors view the female board members as a strategic value added at the decision making level. To achieve the objective, it was collected a database consisting of 76 appointments of women directors in 67 Italian listed companies over the period 2012-2016 and then it was investigated the stock price performance of those companies in that five years span. The research hypothesis is examined empirically through the event study methodology in order to check the existence of abnormal returns on the appointment of women directors. Findings suggest that investors do not strongly believe that the simple appointment of women directors would have a positive effect on the future performance of firms.

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Director Interlocks and Spillover Effects of Reputational Penalties From Financial Reporting Fraud

Cited by 235 publications

References 94 publications

Exceptional boards: Environmental experience and positive deviance from institutional norms

Exceptional boards: Environmental experience and positive deviance from institutional norms

The effects of having more than one good reputation on distributor investments in the film industry

The Market Reaction to the Appointment of Women on Corporate Boards: Evidence from the Italian Listed Companies

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