Dandan Wang, Thomas Walker and Sergey Barabanov
The purpose of this study is to suggest an approach to regain consumer trust after negative effects of greenwashing that draws corporations and consumers into a conflicted…
Abstract
Purpose
The purpose of this study is to suggest an approach to regain consumer trust after negative effects of greenwashing that draws corporations and consumers into a conflicted relationship.
Design/methodology/approach
The authors collect and interpret qualitative data from in-depth interviews to develop a theoretical approach that enables the rebuilding of trust between greenwashing corporations and their consumers using the concept of psychological resilience.
Findings
This analysis indicates that the approach is an interaction between consumers with green brand loyalty and greenwashing corporations. This type of consumer demands emotional factors, functional factors and legitimate factors in the process of psychological resilience, and after greenwashing, corporations should select appropriate recovery strategies to stimulate these protective factors.
Originality/value
Previous research studied green consumer trust in the marketing field but did not explore the core of trust which was regarded as a cognitive process. This paper investigates green consumer behaviour under the perspective of psychological resilience and makes an innovative attempt to understand drivers of regaining consumer trust. Previous research works put forward a series of strategies related to regaining trust, but they did not discuss the mechanisms by which these strategies work. Using the method of grounded theory, we attempt to reveal the “black box” of consumers cognition after greenwashing and propose a strategy for regaining consumer trust.
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Sergey S. Barabanov, Anup Basnet, Thomas J. Walker, Wangchao Yuan and Stefan Wendt
This study aims to examine the determinants of corporate green investments (GI) by using a series of both firm- and country-level factors.
Abstract
Purpose
This study aims to examine the determinants of corporate green investments (GI) by using a series of both firm- and country-level factors.
Design/methodology/approach
The authors collect information on environmental expenditures of 763 firms from 40 countries and use random effects regressions to identify the determinants of GI.
Findings
The authors find that larger firms tend to invest more in green projects, whereas firms that are highly valued or more profitable are less likely to go green. In terms of country-level determinants, we find that the gross domestic product (GDP) per capita and population are positively related with GI, while GDP growth and surface area are negatively associated with GI. Additionally, firms in common-law countries and English-speaking countries make fewer GI than firms in other countries.
Social implications
The findings of this research not only contribute to the academic literature in these areas, but also have important implications for both regulators and policymakers in countries that exhibit sub-par GI or who otherwise aim to increase GI by firms operating in their country.
Originality/value
The authors identify and explore the key determinants of GI from both a firm- and country-level perspective.
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Thomas J. Walker, Dolruedee Thiengtham, Onem Ozocak and Sergey S. Barabanov
The study aims to examine the stock price performance of publicly owned railroad companies following severe railroad accidents that resulted in the loss of human lives and/or…
Abstract
Purpose
The study aims to examine the stock price performance of publicly owned railroad companies following severe railroad accidents that resulted in the loss of human lives and/or hazardous material spills. The focus is on legal liability considerations as one of the primary factors that drives a firm's abnormal performance following a given accident.
Design/methodology/approach
This paper employs a sample of 97 railroad accidents that occurred between January 1967 and December 2006 and involved equipment (tracks and/or locomotives) owned by publicly traded US and Canadian railroad companies. The stock price reaction of the affected firms is examined following these disasters and a series of univariate and multivariate tests is used to investigate whether differences in abnormal returns following a given accident can be related to various factors that characterize the affected firm or the accident it was involved in.
Findings
The results suggest that legal liability considerations are one of the primary factors that determine a company's stock price reaction following a railroad disaster. Specifically, it is observed that firms that are likely to be sued in connection with an accident tend to incur larger stock price losses. On the other hand, it is found that firms that are protected through indemnification agreements suffer only insignificant price declines, even if initial accident reports hold them responsible for causing the accident.
Originality/value
The paper extends the prior literature on the stock market's reaction to firm‐specific catastrophic events. While there are a number of studies that examine the financial consequences of aviation disasters, there is to the authors' knowledge only one prior study that performs a similar analysis for railroad accidents.
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The purpose of this study is to identify various Russian manifestations on expanding its role in sub-Saharan Africa, as well as shed light on the major obstacles it may face.
Abstract
Purpose
The purpose of this study is to identify various Russian manifestations on expanding its role in sub-Saharan Africa, as well as shed light on the major obstacles it may face.
Design/methodology/approach
The research paper uses the “national role theory” to analyze the factors that helped in the growing Russian role in sub-Saharan African countries. It assumes that every state seeks to play a particular role, and that role is reflected in its foreign policy, which is known as “role performance,” and this role originates from several sources. On the other hand, this role faces various obstacles, mostly from the external environment, especially the international system’s structure, global values and international obligations, known as “role prescriptions.”
Findings
Despite Russia’s ability to use all its capacities in expanding its role in the African continent, the degree of its influence varied from one field to another. While it was very influential in the military, security, political, diplomatic and technical fields, it is relatively less in the economic and counter-terrorism areas.
Research limitations/implications
This study paves the way for further researches related to international competition over sub-Saharan Africa, whether economically, militarily or politically, in addition to other studies related to potential cooperation opportunities, especially in security and combating terrorism.
Originality/value
This research’s significance stems from using the existing theoretical structure represented in national role theory in analyzing the Russian orientation toward sub-Saharan Africa, giving more attention to the latest developments in Russian strategy, as well as clarifying the major obstacles that may hinder its activities.