Seminar with Jean-Philippe Vergne, Ivey School of Business


 
Wednesday, October 2, 2013 - 12:00 to 13:30

Title

Asset Divestment as a Response to Media Attacks in Stigmatized Industries.

Abstract

In stigmatized industries characterized by hostile audiences and below-average transparency, firms do not use the same strategies as in unstigmatized industries when they face media attacks. Because they avoid publicizing their tainted-sector membership, when threatened, such firms respond by divesting assets from that industry. By analyzing asset divestment in the arms industry, we demonstrate that media attacks on the focal firm and its peers increase that firm’s likelihood of asset divestment. Specifically, attacks on the focal firm are more consequential than attacks on peers in the same industry subcategory, which, in turn, are more consequential than attacks on peers in different subcategories. These findings shed new light on strategy in stigmatized industries, the relationship between strategic decisions and impression management, and the role of infomediaries.

Contact person

Bersant Hobdari (bh.int@cbs.dk)

Venue

Porcelænshaven 24, 2nd floor, room 2.68

The page was last edited by: Department of International Economics and Management // 12/17/2017