Journal article
Investor relations, reputational bonding, and corporate governance: The case of Royal Ahold
Journal of accounting and public policy, Vol.26(3), pp.328-375
05/2007
DOI: 10.1016/j.jaccpubpol.2007.03.002
Abstract
Royal Ahold (
Koninklijke Ahold NV) was one of the major success stories in the 1990s and is one of the major failures, suffering a complete meltdown, in 2003. We investigate the strategy, investor relations, accounting transparency and corporate governance of Ahold; these elements jointly drive the firm’s performance over the past decade. Investor relations and its implications are an important but under researched aspect of the market’s belief formation process. For Ahold, investor relations is an important component of reputational bonding [Siegel, J., 2005. Can foreign firms bond themselves effectively by renting US securities laws? Journal of Financial Economics 75, 319–359]. Our clinical study documents investor relations’ influence on investor expectations. We then provide an in-depth analysis of the strategy, accounting transparency and corporate governance that lead to Ahold’s downfall. We provide insights and implications into these relationships that present theory and empirical studies have not fully addressed.
Details
- Title: Subtitle
- Investor relations, reputational bonding, and corporate governance: The case of Royal Ahold
- Creators
- Abe de Jong - Erasmus University RotterdamDouglas V. DeJong - University of IowaGerard Mertens - Erasmus University RotterdamPeter Roosenboom - Erasmus University Rotterdam
- Resource Type
- Journal article
- Publication Details
- Journal of accounting and public policy, Vol.26(3), pp.328-375
- DOI
- 10.1016/j.jaccpubpol.2007.03.002
- ISSN
- 0278-4254
- eISSN
- 1873-2070
- Publisher
- Elsevier Inc
- Number of pages
- 48
- Language
- English
- Date published
- 05/2007
- Academic Unit
- Accounting
- Record Identifier
- 9984962885402771
Metrics
1 Record Views