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- W1562437319 abstract "The literature on reputation suggests contradictory patterns in how audiences respond to corporate misconduct. On the one hand, a high reputation is thought to buffer a firm because it predisposes audiences to give reputable firms the benefit of the doubt. On the other hand, audiences might judge firms with positive reputations more harshly when they violate expectations. Our study attempts to reconcile this contradiction and provide a theoretical explanation for the conditions that underlie reputation's differential effects on audience evaluations. We argue that the manner in which a firm’s reputation influences audiences’ judgments of controversial actions depends on whether the organization’s guilt is ambiguous or established. When there is ambiguity about the charges made against the organization, audiences are inclined to give the benefit of the doubt to an organization with a positive reputation because they are motivated to assess its actions in a manner congruent with their positive expectations. But when an organization's blameworthiness is firmly established, audience members are more likely to punish a reputable organization with harsher sanctions, leading to the “halo tax.” We test our hypotheses using a novel database of over 500 jury verdicts in employment discrimination cases brought against a sample of public companies from 1998-2008." @default.
- W1562437319 created "2016-06-24" @default.
- W1562437319 creator A5009232748 @default.
- W1562437319 creator A5067293904 @default.
- W1562437319 date "2014-01-01" @default.
- W1562437319 modified "2023-09-26" @default.
- W1562437319 title "Taxing a Tarnished Halo: Reputation and Ambiguity in Evaluations of Corporate Transgressions" @default.
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