| dc.description.abstract | In this paper, we examine how the board of directors react when faced with
corporate scandals. We compare 75 Norwegian firms involved in corporate
scandals with 75 control firms and measure how these scandals impact the
probability of CEO, chairman, and auditor turnover. We find minimal previous
literature on this topic and none relating to Norwegian firms. By employing a
logistic regression model in multiple stages, we find statistical evidence that firms
involved in scandals have higher turnover rates for all three board reactions,
indicating that the board of directors are effective monitors in corporate scandals.
Further, we discover that board size, board independence, and female board
presence significantly influence our three board reactions, both independent and
conditional on corporate scandals. | en_US |
