Assessing Sustainability-Related Systematic Reputational Risk through Voting Results in Corporate Meetings: A Cross-Industry Analysis

Abstract

This research uses Sharpe’s single-index model to analyze voting results in corporate meetings, thus assessing whether voting results at the corporate level are influenced by aggregated voting results at the industry level. We use a sample of votes regarding managerial proposals concerning executive election and compensation. The companies involved are included in the five most represented industries in NASDAQ, and the analysis focuses on the 2003–2017 period. The votes were disclosed by institutional investors who are especially concerned with corporate governance and sustainability issues, so we consider that they reflect sustainability-driven decisions. Based on previous research linking voting results to reputational consequences, we assess the systematic component of sustainability-related reputational risk within these five industries, finding significant differences among them. Thus, although the systematic component of sustainability-related reputational risk appears to be strong for financial and technological companies, it is weak for healthcare, consumer services, and capital goods companies. Implications for researchers and practitioners are reported.

Online reputation, virtual experience and tourists’ revisit intentions. The case of Vilakazi street tourism corridor in Soweto

“…Of interest to the present study, ICT has given rise to online destination reputation (Gössling, Hall & Andersson 2016), which also influences people's choices (Harvey & Groutsis 2015). This concept (firm's reputation) has received attention from marketing researchers (Petersen & Lemke 2016;Vizcaíno-González, Iglesias-Antelo & Romero-Castro 2019). For the tourism industry, destination reputation captures tourists' beliefs about the quality and features of a destination (Fu et al 2016;Kock et al 2019), affects customers' service choice, overall attitudes about services and trust, and influences their visit intentions (Duygun & Mentes 2015).…”