Portal de Periódicos da CAPES

FIGHT OR FLIGHT: MANAGING STIGMA IN EXECUTIVE CAREERS.

2002; Academy of Management; Volume: 2002; Issue: 1 Linguagem: Inglês

10.5465/apbpp.2002.7516529

2376-7197

Albert A. Cannella, Donald Fraser, D. SCOTT LEE, Matthew Semadeni,

Banking stability, regulation, efficiency

Our study develops and tests theory about how executives can manage the stigma associated with organizational bankruptcy. We specifically examine the decision of whether to stay and fight to avoid the bankruptcy or to run away to avoid its stigma. Further, we examine the consequences endured by executives post-bankruptcy, for both those who stay and those who flee. Our study's contributions are threefold. First, we extend the study of bankruptcy stigma to examine how that stigma might be managed ex ante. Second, we explore the factors that influence executives as they craft their stigma management strategies — in particular, the bonding and accountability aspects of the fight or flight decision. Finally, we evaluate the effectiveness of labor markets in ex post settling up (Fama, 1980). We argue that by distancing themselves from a stigmatizing event such as a bankruptcy, executives can avoid or reduce the stigma that they suffer. Our evidence suggests that flight may be a viable option to avoid the stigma of bankruptcy, but it is not a panacea.