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How do firms repair their reputations following a serious accounting restatement? To reply this dilemma, we evaluate corporations' push releases and establish 1,765 reputation-constructing actions taken by: (1) 94 restating companies inside the durations right before and following their restatement; and (2) a list of matched Regulate corporations all through contemporaneous periods. We posit that companies have incentives to focus on multiple stakeholders within a reputation repair method—which include funds providers, shoppers, workers, and geographic communities—Which actions concentrating on Every group crank out good current market returns as reputation money is repaired.
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A real-estate tycoon outside of America who has become accused of impropriety by her colleagues and ousted from the company she Established
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