The blame game: COVID-19 crisis and financial performance

This research investigates the manager’s impression management during the COVID-19 pandemic by gauging the agency theory framework. We examine how managers blame COVID-19 when the firms experience declining performance to retain their reputation. Overall, our results indicate that those firms with d...

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Detalles Bibliográficos
Autores principales: Brahmana, Rayenda Khresna, Setiawan, Doddy, Kontesa, Maria
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Springer International Publishing 2022
Materias:
Original Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9569173/
https://www.ncbi.nlm.nih.gov/pubmed/36268518
http://dx.doi.org/10.1007/s43546-022-00352-w
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author Brahmana, Rayenda Khresna
Setiawan, Doddy
Kontesa, Maria
author_facet Brahmana, Rayenda Khresna
Setiawan, Doddy
Kontesa, Maria
author_sort Brahmana, Rayenda Khresna
collection PubMed
description This research investigates the manager’s impression management during the COVID-19 pandemic by gauging the agency theory framework. We examine how managers blame COVID-19 when the firms experience declining performance to retain their reputation. Overall, our results indicate that those firms with declining performance will blame COVID-19 compared to those with expected performance. It also indicates that the odds of COVID-19 appearing in the financial report will be higher in the declining performance firms. Our analysis confirms the impression management theory and agency theory by suggesting that, under declining performance, managers blame COVID-19 as the justifications to alter the attention from their incapability to the black swan event. SUPPLEMENTARY INFORMATION: The online version contains supplementary material available at 10.1007/s43546-022-00352-w.
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spelling pubmed-95691732022-10-16 The blame game: COVID-19 crisis and financial performance Brahmana, Rayenda Khresna Setiawan, Doddy Kontesa, Maria SN Bus Econ Original Article This research investigates the manager’s impression management during the COVID-19 pandemic by gauging the agency theory framework. We examine how managers blame COVID-19 when the firms experience declining performance to retain their reputation. Overall, our results indicate that those firms with declining performance will blame COVID-19 compared to those with expected performance. It also indicates that the odds of COVID-19 appearing in the financial report will be higher in the declining performance firms. Our analysis confirms the impression management theory and agency theory by suggesting that, under declining performance, managers blame COVID-19 as the justifications to alter the attention from their incapability to the black swan event. SUPPLEMENTARY INFORMATION: The online version contains supplementary material available at 10.1007/s43546-022-00352-w. Springer International Publishing 2022-10-15 2022 /pmc/articles/PMC9569173/ /pubmed/36268518 http://dx.doi.org/10.1007/s43546-022-00352-w Text en © The Author(s), under exclusive licence to Springer Nature Switzerland AG 2022, Springer Nature or its licensor holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law. This article is made available via the PMC Open Access Subset for unrestricted research re-use and secondary analysis in any form or by any means with acknowledgement of the original source. These permissions are granted for the duration of the World Health Organization (WHO) declaration of COVID-19 as a global pandemic.
spellingShingle Original Article
Brahmana, Rayenda Khresna
Setiawan, Doddy
Kontesa, Maria
The blame game: COVID-19 crisis and financial performance
title The blame game: COVID-19 crisis and financial performance
title_full The blame game: COVID-19 crisis and financial performance
title_fullStr The blame game: COVID-19 crisis and financial performance
title_full_unstemmed The blame game: COVID-19 crisis and financial performance
title_short The blame game: COVID-19 crisis and financial performance
title_sort blame game: covid-19 crisis and financial performance
topic Original Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9569173/
https://www.ncbi.nlm.nih.gov/pubmed/36268518
http://dx.doi.org/10.1007/s43546-022-00352-w
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