IDEAS home Printed from https://ideas.repec.org/a/bla/stratm/v34y2013i5p590-609.html
   My bibliography  Save this article

Executive turnover in the stock option backdating wave: The impact of social context

Author

Listed:
  • Margarethe F. Wiersema
  • Yan (Anthea) Zhang

Abstract

While boards are known to react to corporate misconduct by removing the executives responsible, little is known about whether the board's response is shaped by the firm's social context. Using the 2006 stock option backdating scandal, in which firms manipulated stock option grant dates, we examine the impact of two dimensions of social context—the pervasiveness of the misconduct and the media attention to the misconduct. We find that firms implicated later in the backdating scandal are less likely to experience executive turnover than those implicated earlier. We also find that the amount of media attention to backdating at the time a firm is implicated in the scandal increases the likelihood that the firm experiences executive turnover.Copyright © 2012 John Wiley & Sons, Ltd.

Suggested Citation

  • Margarethe F. Wiersema & Yan (Anthea) Zhang, 2013. "Executive turnover in the stock option backdating wave: The impact of social context," Strategic Management Journal, Wiley Blackwell, vol. 34(5), pages 590-609, May.
    • Handle: RePEc:bla:stratm:v:34:y:2013:i:5:p:590-609
    DOI: 10.1002/smj.2030
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/smj.2030
    Download Restriction: no
    File URL: https://libkey.io/10.1002/smj.2030?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:stratm:v:34:y:2013:i:5:p:590-609. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/0143-2095 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.