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This article investigates the link between board members' past professional experiences and the terms and conditions of the debt contracts of their current firms. In particular, we examine whether directors' past bankruptcy experience affects the pricing and nonpricing terms of public debt contracts. Using a sample of 8,142 bond issues in the United States in the period 1995 to 2015, we document higher credit spreads and smaller bond sizes for firms with such directors, suggesting that bondholders are concerned about past bankruptcy experience. Our results remain robust to different model specifications. This effect is moderated for bankruptcies that are likely driven by macroeconomic shocks such as the dotcom bubble and the global financial crisis. We also show that our findings are not explained by bond issuers with an elevated risk of default and seem instead to be driven by directors serving on key monitoring committees, indicating that prior bankruptcy experience raises concerns about the company's corporate governance. Finally, mediation analysis offers some evidence of a limited negative indirect effect of prior bankruptcy experience on the terms of debt contracts through the firm's financial and investment policies. Overall, our findings suggest that lenders incorporate information about past professional experiences of directors into public debt contracting. [ABSTRACT FROM AUTHOR]

Held in abeyance by the Cold War and the preeminence of the nation-state over the past fifty years, the legitimacy of the corporation is once again in dispute. New kinds of private agencies and social actors have emerged to raise questions and, in some cases, intervene directly in the governance of major corporations. Often, corporate engagement is out of the public view-being a conversation amongst financial elites about common interests. In other cases, however, shareholder activism is a public affair played out in the full glare of the media at annual general meetings. In this paper social activists' corporate engagement strategies are evaluated utilizing three proprietary data- bases which enable analysis of the patterns of activists' shareholder resolutions with respect to the financial structure and environmental performance of target corporations. An analytical framework is introduced, referencing two models of the firm, the nature of corporate assets (tangible and intangible), and public expectations of corporate performance. Utilizing Interfaith Center for Corporate Responsibility data on social activists' shareholder resolutions it is shown that these types of resolutions can be differentiated according to the nature and volume of activists' resolutions and the motive forces driving intervention. It is also shown that, for all the differences between institutional investors and social activists, they may share the same approach to realizing shareholder value depending on the nature of the corporation. [ABSTRACT FROM AUTHOR]

This article explores the mechanisms by which corporate prestige produces distorted legal outcomes. Drawing on social psychological theories of status, we suggest that prestige influences audience evaluations by shaping expectations, and that its effect will differ depending on whether a firm's blameworthiness has been firmly established. We empirically analyze a unique database of more than 500 employment discrimination suits brought between 1998 and 2008. We find that prestige is associated with a decreased likelihood of being found liable (suggesting a halo effect in assessments of blameworthiness), but with more severe punishments among organizations that are found liable (suggesting a halo tax in administrations of punishment). Our analysis allows us to reconcile two ostensibly contradictory bodies of work on how organizational prestige affects audience evaluations by showing that prestige can be both a benefit and a liability, depending on whether an organization's blameworthiness has been firmly established. [ABSTRACT FROM AUTHOR]

Our purpose in this article is to relate the real movements in the economy during 2008 to the ‘image-work’ of financial institutions. Over the period January—December 2008 we collected 241 separate advertisements from 61 financial institutions published in the Financial Times. Reading across the ensemble of advertisements for themes and evocative images provides an impression of the financial imaginaries created by these organizations as the global financial crisis unfolded. In using the term ‘phantasmagoria’ we move beyond its colloquial sense of a set of strange images designed to dazzle towards the more technical connotation used by Rancière (2004) who suggested that words and images can offer a trace of an overall determining set-up if they are torn from their obviousness so they become phantasmagoric figures. The key phantasmagoric figure we identify here is that of the financial institution as timeless, immortal and unchanging; a coherent and autonomous entity amongst other actors. This notion of uniqueness belies the commonality of thinking which precipitated the global financial crisis as well as the limited capacity for control of financial institutions in relation to market events. It also functions as a powerful naturalizing force, making it hard to question certain aspects of the recent period of ‘capitalism in crisis’. [ABSTRACT FROM AUTHOR]

Facing mounting evidence of academic dishonesty on America's college campuses, many schools in the 1990s implemented academic honor codes to stem the tide. Previous research concerning academic honor codes and other ethics codes highlight the importance of enacting a more ethical organizational culture as well as involving many organizational members in the process. Through the illustrative case of a major public university that struggled to meet this normative goal as it implemented an academic honor code, this article introduces an action learning perspective on how the design and implementation of ethics codes can help effect change in the ethical culture by instilling and reinforcing the values of honesty and integrity. It is argued that codes must be designed with full acknowledgement of the traditions and culture present in the student body, with the involvement of virtually all organization members, to elicit a full understanding of the ethical culture system. [ABSTRACT FROM AUTHOR]