Service on a stigmatized board, social capital, and change in number of directorships

• Autores: Kurt A. Wurthmann
• Localización: Journal of management studies, ISSN 0022-2380, Vol. 51, Nº 5, 2014, págs. 814-841
• Idioma: inglés
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• Resumen

  • This article seeks to develop a nuanced understanding about the relationship between service on a stigmatized board and reduced opportunities for future directorships on other boards by examining the moderating effects of different dimensions of director social capital on this relationship. Evidence based on a unique sample of firms with boards that were viewed as being stigmatized by a group of corporate governance experts suggests that while serving on a stigmatized board is related to a reduction in future number of directorships held, this relationship is significantly mitigated for directors of upper-class origins. However, social capital related to affiliations with other elite institutions does not appear to mitigate reduction in future number of directorships held by outside directors who serve on a stigmatized board. Implications and future directions in research on class-based influence in the corporate community and stigmatization and devaluation of elites associated with corporate failures are discussed.