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Antecedents of Corporate Scandals: CEOs’ Personal Traits, Stakeholders’ Cohesion, Managerial Fraud, and Imbalanced Corporate Strategy

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  • Fabio Zona
  • Mario Minoja
  • Vittorio Coda

Abstract

This study examines the antecedents of corporate scandals. Corporate scandals are defined as rare events occurring at the apex of corporate fame when managerial fraud suddenly emerges in conjunction with a significant gap between perceived corporate success and actual economic conditions. Previous studies on managerial fraud have examined the antecedents of illegal acts in isolation from strategic decisions and in terms of CEOs’ individual responses to the external context. This study frames the antecedents of corporate scandals in terms of the interplay of CEOs’ personal traits with corporate strategy and stakeholders’ cohesion. With this aim, this study builds on extant theory to examine the case of Banca Popolare di Lodi, an Italian bank involved in a corporate scandal in year 2005. The model contributes to advance understanding of the complex dynamics underlying the emergence of corporate scandals. Copyright Springer Science+Business Media B.V. 2013

Suggested Citation

  • Fabio Zona & Mario Minoja & Vittorio Coda, 2013. "Antecedents of Corporate Scandals: CEOs’ Personal Traits, Stakeholders’ Cohesion, Managerial Fraud, and Imbalanced Corporate Strategy," Journal of Business Ethics, Springer, vol. 113(2), pages 265-283, March.
    • Handle: RePEc:kap:jbuset:v:113:y:2013:i:2:p:265-283
    DOI: 10.1007/s10551-012-1294-6
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    3. Zaman, Rashid, 2024. "When corporate culture matters: The case of stakeholder violations," The British Accounting Review, Elsevier, vol. 56(1).
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    10. Eric N. Johnson & Linda A. Kidwell & D. Jordan Lowe & Philip M. J. Reckers, 2019. "Who Follows the Unethical Leader? The Association Between Followers’ Personal Characteristics and Intentions to Comply in Committing Organizational Fraud," Journal of Business Ethics, Springer, vol. 154(1), pages 181-193, January.
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    12. Liuyang Ren & Xi Zhong & Liangyong Wan, 2022. "Missing Analyst Forecasts and Corporate Fraud: Evidence from China," Journal of Business Ethics, Springer, vol. 181(1), pages 171-194, November.
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    14. Sebastian C. Schuh & Michelle Xue Zheng & Katherine R. Xin & Juan Antonio Fernandez, 2019. "The Interpersonal Benefits of Leader Mindfulness: A Serial Mediation Model Linking Leader Mindfulness, Leader Procedural Justice Enactment, and Employee Exhaustion and Performance," Journal of Business Ethics, Springer, vol. 156(4), pages 1007-1025, June.
    15. Nam Tran & Don O'Sullivan, 2020. "The relationship between corporate social responsibility, financial misstatements and SEC enforcement actions," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(S1), pages 1111-1147, April.
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    17. James R. Van Scotter & Karina De Déa Roglio, 2020. "CEO Bright and Dark Personality: Effects on Ethical Misconduct," Journal of Business Ethics, Springer, vol. 164(3), pages 451-475, July.
    18. Hope, Ole-Kristian & Wang, Jingjing, 2018. "Management deception, big-bath accounting, and information asymmetry: Evidence from linguistic analysis," Accounting, Organizations and Society, Elsevier, vol. 70(C), pages 33-51.
    19. Rondi, Emanuela & Benedetti, Carlotta & Bettinelli, Cristina & De Massis, Alfredo, 2023. "Falling from grace: Family-based brands amidst scandals," Journal of Business Research, Elsevier, vol. 157(C).
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    21. Maria Steinmeier, 2016. "Fraud in Sustainability Departments? An Exploratory Study," Journal of Business Ethics, Springer, vol. 138(3), pages 477-492, October.

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