Cleaning house or jumping ship? Understanding board upheaval following financial fraud

• 成果类型: Article
• 署名作者: Marcel, Jeremy J.; Cowen, Amanda P.
• 署名单位: University of Virginia
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/smj.2126
• 发表日期: 2014
• 页码: 926-937
• 关键词: stigma management; FRAUD; ORGANIZATIONAL LEGITIMACY; governance failure; Director turnover

摘要

Boards experience elevated levels of turnover among outside directors following financial fraud. Scholars have proposed two mechanisms that may drive this turnover. The first views turnover as part of a board's efforts to repair organizational legitimacy and avert resource withdrawal. The second argues that turnover is a byproduct of individual directors' efforts to safeguard their own reputations and mitigate professional devaluation. We use data on director departures following 63 fraud events to explore the relative importance of these two mechanisms. The results clarify our understanding of responses to governance failures and the challenges of reconstituting board membership following financial improprieties. Copyright (c) 2013 John Wiley & Sons, Ltd.