Abstract

Can status generate a halo effect that creates spillover consequences for similar others? In this paper, we ask if it is possible for status to spill over to one’s peers, improving the outcomes of actors whose identities might be diminished by a connection to organizational misconduct. We unpack the consequences of misconduct for corporate directors by studying the change in the prominence of directors’ affiliations following revelations of misconduct on one of the boards on which they serve. Using a sample of U.S. companies restating earnings between 1996 and 2003, we find that one’s status, as well as the status of others actors who have the same relationship to the misconduct firm, can moderate the negative effect of association with misconduct on the status a director’s subsequent affiliations. Our findings suggest that the collective status of a group of similar actors buffers the focal actor’s social position. Thus, we find evidence of a halo spillover effect created by the collective status of a gr...

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.