In the wake of scandal, what could be better than a heartfelt apology? Well, from a shareholder’s point of view, apparently the lack of a heartfelt apology might be better. Sure, you, dear random member of the public, might like to see a CEO grovel, but the evidence shows that the stock market disagrees with you. >>>
LINK: CEOs: Apologize, but Keep It Manly (by Peter Robison for Bloomberg)
…Two business professors who analyzed more than 100 corporate apologies over three decades through 2012 found that those demonstrating the most emotion also experienced the steepest declines in share price over the following week. “The more empathy the company shows, the more they promise follow-through, the more they get slammed by the market,” says DePaul University ethicist Daryl Koehn of her research with Maria Goranova, who teaches management at the University of Wisconsin at Milwaukee…..
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