Volume 19, 2008
Proceedings of the Nineteenth Annual Meeting
Jill A. Brown, Ann C. Buchholtz, Andrew Ward
Pages 383-394
Scapegoating Under Scrutiny
This paper develops and tests a model of fingerpointing behaviors that board members experience because of regulatory reforms. We present the partial results of a large study of 138 board members on 54 publicly traded boards in the United States. We found that recent governance reforms that mandate increased accountability of board members are associated with less board cohesion and that
lower board cohesion is associated with fingerpointing behaviors. These findings suggest that the stages of institutionalization following regulatory shock falter when negative group behaviors develop under scrutiny.