haku: @indexterm Corporate finance / yhteensä: 722
viite: 173 / 722
| Tekijä: | Baucus, M. S. Baucus, D. A. |
| Otsikko: | Paying the piper: An empirical examination of longer-term financial consequences of illegal corporate behavior |
| Lehti: | Academy of Management Journal
1997 : FEB, VOL. 40:1, p. 129-151 |
| Asiasana: | CORPORATE RESPONSIBILITY COMPANIES CORPORATE FINANCE CORPORATE IMAGE BUSINESS ETHICS STAKEHOLDERS |
| Kieli: | eng |
| Tiivistelmä: | This paper investigates long-term performance effects of corporate illegality and shows that firms experience lower accounting returns over five years and slower sales growth in the third through fifth year after conviction. Stakeholders take all corporate wrongdoers as serious, no matter how serious the illegalities were , but the response is stronger to multiple convictions for wrongdoing. Low performance does not deter subsequent illegality, single-conviction firms may suffer nonmonetary consequences that discourage repeated wrongdoing, such as negative publicity, nonmonetary sanctions and costs like recalls and mandatory training for employees. Single-conviction firms can successfully engage in defensive activities, minimizing the conviction's impacts on performance and reputation. |
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