IDEAS home Printed from https://ideas.repec.org/a/arp/ijefrr/2021p115-131.html
   My bibliography  Save this article

Crisis Management Strategy in Handling Financial Sector Scandals in the Digital Transformation Era

Author

Listed:
  • Wenjing Wang

    (Zhejiang Business College, Department of Accounting and Financial Management, Hangzhou, Zhejiang Province, China)

  • Arthur S. Guarino

    (Rutgers University, Department of Finance and Economics, Newark, New Jersey, U.S.A)

Abstract

This paper provides empirical evidence of how scandals could affect financial institutions in terms of market stock price, yearly returns, and the length of time it took to regain the public’s trust and ultimately recover in the long run. Moreover, we carefully examine the importance of dealing with crisis management in the digital transformation era’s financial service sector. We specialize in crisis management, which aims to mitigate the destruction of companies’ public crises in existence. Finally, based upon investigating scandals in public and private financial sectors in the United States, we list 21 strategic crisis management plans at the end of the paper to handle financial services sector scandals in the digital transformation era.

Suggested Citation

  • Wenjing Wang & Arthur S. Guarino, 2021. "Crisis Management Strategy in Handling Financial Sector Scandals in the Digital Transformation Era," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 7(3), pages 115-131, 09-2021.
    • Handle: RePEc:arp:ijefrr:2021:p:115-131
    as

    Download full text from publisher

    File URL: https://www.arpgweb.com/pdf-files/ijefr7(3)115-131.pdf
    Download Restriction: no
    File URL: https://www.arpgweb.com/journal/5/archive/09-2021/3/7
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Regina F. Bento & Lasse Mertins & Lourdes F. White, 2017. "Ideology and the Balanced Scorecard: An Empirical Exploration of the Tension Between Shareholder Value Maximization and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 142(4), pages 769-789, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chaohai Shen & Bingquan Fang & Xiaolan Zhou, 2022. "The Relationship between Corporate Sustainable Development Performance, Investor Sentiment, and Managerial Overconfidence," Sustainability, MDPI, vol. 14(17), pages 1-19, August.
    2. Cosmina Lelia Voinea & Marcel Logger & Fawad Rauf & Nadine Roijakkers, 2019. "Drivers for Sustainable Business Models in Start-Ups: Multiple Case Studies," Sustainability, MDPI, vol. 11(24), pages 1-25, December.
    3. Harmke Immink & Robbie Louw & Amy Garlick & Samuel Vosper & Alan Brent, 2022. "Country specific low carbon commitments versus equitable and practical company specific decarbonisation targets," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(8), pages 10005-10025, August.
    4. Rosa Fioravante, 2024. "Beyond the Business Case for Responsible Artificial Intelligence: Strategic CSR in Light of Digital Washing and the Moral Human Argument," Sustainability, MDPI, vol. 16(3), pages 1-16, February.
    5. Jonathan Makau & Prof. Emmanuel Awuor, 2024. "Strategic Supply Chain Management Practices and Performance of Public Service Pension Schemes in Kenya: A Case Study of Public Service Superannuation Fund," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(7), pages 2318-2328, July.
    6. Luis Jesús Córdova-Aguirre & Juan Manuel Ramón-Jerónimo, 2021. "Exploring the Inclusion of Sustainability into Strategy and Management Control Systems in Peruvian Manufacturing Enterprises," Sustainability, MDPI, vol. 13(9), pages 1-17, May.
    7. Christoph Endenich & Rouven Trapp, 2020. "Ethical Implications of Management Accounting and Control: A Systematic Review of the Contributions from the Journal of Business Ethics," Journal of Business Ethics, Springer, vol. 163(2), pages 309-328, May.
    8. Ali Fatemi & Iraj Fooladi, 2020. "A primer on sustainable value creation," Review of Financial Economics, John Wiley & Sons, vol. 38(3), pages 452-473, July.
    9. Shouyu Yao & Yuying Pan & Lu Wang & Ahmet Sensoy & Feiyang Cheng, 2023. "Building Eco-friendly Corporations: The Role of Minority Shareholders," Journal of Business Ethics, Springer, vol. 182(4), pages 933-966, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arp:ijefrr:2021:p:115-131. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Managing Editor (email available below). General contact details of provider: http://www.arpgweb.com/?ic=journal&journal=5&info=aims .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.