Effects of Legitimation Strategies and Management Integrity on Divestment Decisions

Description

This study will examine investor reactions to proactive corporate disclosures of tax evasion events under alternative management legitimation strategies and levels of management integrity. Management legitimation strategies (symbolic vs. substantive) and management integrity (high vs. low) will be manipulated on a between-subjects basis in a 2 x 2 experimental design. Participants' decisions of whether to divest from the company will serve as the primary dependent variable. A variety of investor perceptions and attitudes will also be measured to test their potential association with divestment decisions. Prior accounting studies have not examined the effects of proactive disclosure strategies designed to preserve corporate legitimacy in the face of clear evidence of illegal activities. Nor have they experimentally tested the influence of information regarding management integrity on investors' decisions.

Period	21 May 2020
Event title	Postgraduate Seminar Series
Event type	Public Lecture