Investors' Responses to Management Getting Out Ahead of Negative Media Stories: The Moderating Effects of Management's Action Plan and the Media's Focus

Crisis communications experts commonly advise managers to get out ahead of the media to increase management's credibility. We use an experiment to examine how investors' responses to management getting out ahead of a negative media story are moderated by management's action plan and the media's focus on the company. When the company is the focus of the media's lede, investors respond more negatively when the company gets out ahead of the media with plans to change, instead of stay, the course to handle the negative issue. Yet, investors respond more positively when the company responds after the media with plans to change, instead of stay, the course. In contrast, when the media does not focus on the company in its lede, but instead only mentions the company in the story, we find that investors' responses are not sensitive to management's strategic disclosure choices that we examine.

To disclose or not to disclose? Fashion brands' strategies for transparency in sustainability reporting

PurposeThe purpose of this quantitative study is to identify disclosure strategies for transparency in sustainability reporting to support strategic thinking around transparency in the fashion industry. This research has two specific research objectives: to capture progress towards greater transparency across sustainability reporting areas, across fashion brands and years, and to identify strategic approaches for transparency in sustainability reporting by revealing common patterns in business disclosure.Design/methodology/approachThe authors cross-sectionally analyzed secondary data using four consecutive Fashion Transparency Indices (2017–2020). Brands' strategies for transparency in sustainability reporting were examined through the stakeholder theory lens.FindingsFindings confirm the presence of four approaches to disclosure: measurable, ambiguous, policy-only and secretive strategy. The disclosure was disproportionally distributed between 30% brands as transparency leaders and 70% brands as transparency laggards. The most transparent brands were not necessarily those rated highest by the index but those whose progress toward transparency was traceable over the years.Research limitations/implicationsThe study has overcome the limitation of the verifiability approach, supporting the requirement for diachronic and strategic disclosure assessments.Practical implicationsAs most brands hesitantly disclose sustainability information, stakeholders cannot know whether business policies equate to more than a corporate wish list. If there is no inspection for mandatory business disclosure, and if there is no penalty for disclosure violations, some fashion retailers will continue to generate profits while operating in an uncompliant and “opaque” manner.Originality/valueThe framing of disclosure strategies for transparency in sustainability reporting is the first scholarly effort to investigate diachronically sustainability disclosure among a big sample of major fashion brands.

Is Voluntary Disclosure Value Relevant? Evidence from Top Listed Firms in India

In view of ongoing reforms in India with emphasis on improving transparency of corporate, the present study aims to examine the influence of voluntary disclosure on the market value of India’s top-listed firms. To this end, the study uses a sample of top 100 non-financial and non-utility firms listed at Bombay Stock Exchange based on market capitalization over a 5-year period (2014–2018). To control potential endogeneity in the relationship between voluntary disclosure and firms’ market valuation, fixed effect panel data model and two-stage least squares model of estimation have been employed. The result obtained from the analysis suggests that enhanced level of voluntary disclosure significantly improves the market value of sample firms. The study further undertakes additional analysis by categorizing voluntary disclosure into its sub-components wherein the findings reveal that three components of voluntary disclosure such as corporate and strategic disclosure, forward looking disclosure and corporate governance disclosure make positive contribution towards market value of firms, while the remaining components of voluntary disclosure such as human and intellectual capital disclosure and financial and capital market disclosure do not appear to have any significant influence on the same. Overall, the finding suggests that voluntary disclosure made by sample firms is considered relevant by investors. However, value relevance of different components of voluntary disclosure varies with the nature and extent of information disclosed. The study offers some important policy implications.

Vicarious Stigma and Self-Stigma Experienced by Parents of Children with Mental Health and/or Neurodevelopmental Disorders

The stigma of young children with mental health and/or neurodevelopmental disorders is experienced by their parents in at least two ways: self-stigma and vicarious stigma. Secrecy may diminish stigma through impression management or strategic disclosure. The present study explores the relationship between vicarious stigma, self-stigma, secrecy coping, depression, and quality of life. Additionally, we examine the structure of a novel measure of vicarious stigma. Fifty parents of children with mental health and/or neurodevelopmental disorders completed measures. Self-stigma and sadness due to vicarious stigma were significantly associated with greater depression and diminished quality of life. Higher secrecy coping was also associated with higher depression and lower quality of life, supporting the benefits of disclosure. This research meaningfully adds to our understanding of stigma in general, and as experienced by parents of children with mental health and/or neurodevelopmental disorders. Implications for ongoing stigma change development and evaluation are discussed.