HCBE Faculty Articles

Title

Service on a Stigmatized Board, Social Capital, and Change in Number of Directorships

Document Type

Article

Publication Date

3-10-2014

Publication Title

Journal of Management Studies

ISSN or ISBN

0022-2380

Volume

51

Issue/Number

5

First Page

814

Last Page

841

Abstract/Excerpt

This article seeks to develop a nuanced understanding about the relationship between service on a stigmatized board and reduced opportunities for future directorships on other boards by examining the moderating effects of different dimensions of director social capital on this relationship. Evidence based on a unique sample of firms with boards that were viewed as being stigmatized by a group of corporate governance experts suggests that while serving on a stigmatized board is related to a reduction in future number of directorships held, this relationship is significantly mitigated for directors of upper‐class origins. However, social capital related to affiliations with other elite institutions does not appear to mitigate reduction in future number of directorships held by outside directors who serve on a stigmatized board. Implications and future directions in research on class‐based influence in the corporate community and stigmatization and devaluation of elites associated with corporate failures are discussed.

DOI

doi.org/10.1111/joms.12087

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Peer Reviewed

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