Firm-Specific Moderators in Recovery From Brand Scandals

Abstract

<jats:p>The aim of this chapter is to investigate the firm-related factors that moderate the effect size of corporate scandals that brands are faced with at times. The issue is analyzed from consumer market and capital market perspectives. An extensive literature review is presented to reveal the existing viewpoints and applications in this aspect. Among the firm-specific factors discussed are brand equity, firm size and industry, corporate reputation, social responsibility, CEO traits, source, and timing of disclosure. It is concluded that although brand scandals are hard to control, depending on various conditions related to both the firm and industry, their effect size can at least be managed with a proactive approach, which is handled at the strategic level. </jats:p>