Publication on #MeToo movement to examine the reputation costs of executive misconduct

In their recently published journal article, Yassin Denis Bouzzine and Prof. Dr. Rainer Lueg reveal significant losses in market value of up to $5.00 billion for firms facing public announcements of sexual harassment accusations against their executives.

By identifying 98 accusations and employing an event study methodology, the results of the study indicate that #MeToo accusations substantially harmed the stock returns of the organization despite the accusation relating to an individual’s misconduct.

These findings provide evidence that misconduct by individuals matters for organizations, especially when the executive is employed in a leading position at the parent organization.

The research can be accessed from the Scandinavian Journal of Management here.