26 November: Research Presentation by Charlotte Antoons
-
Vendredi, 26 novembre 2021, 08h00Vendredi, 26 novembre 2021, 17h00
How do firms repair their reputation and restore legitimacy after an environmental scandal? Drawing on signaling theory (Spence 1973), I examine how firms can restore stakeholder trust and organizational legitimacy by appointing directors with environmental expertise to the board in response to an environmental scandal. That is, the appointment of an environmental expert can function as a quality and intention signal to reduce information asymmetry between the firm and its external environment. However, whether such a response is a substantive or symbolic effort in improving governance is an open empirical question. This research project aims to examine under which circumstances such a response can be accommodative in restoring justice.