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Investor Regret, Share Performance and the role of Corporate Agreeableness
Vohra, Shalini Davies, Gary
Vohra, Shalini
Davies, Gary
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2020-02-29
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Abstract
Drawing on regret and reputation literatures, the authors demonstrate how positive corporate associations can mitigate the effects of share performance on investor regret. Three studies are presented, the first involved the observation of six investment club meetings. The second is a survey of investors exploring some of the findings of the first study, specifically the relationship between investor regret and corporate associations. The final study uses an experimental design to test whether corporate social responsibility (CSR) messaging can influence regret in the context of disappointing share performance by influencing corporate agreeableness. The main findings are that a range of corporate associations are important to investors, more so than actual share performance, in their decision-making. Specifically, the more agreeable (e.g. trustworthy, supportive) the company is perceived to be, the lower will be any regret felt over share performance. Finally, CSR information was found to affect regret via an influence on agreeableness.
Citation
Vohra, S. & Davies, G. (2020). Investor Regret, Share Performance and the role of Corporate Agreeableness. Journal of Business Research, 110, 306-315.
Publisher
Elsevier
Journal
Journal of Business Research
Research Unit
DOI
10.1016/j.jbusres.2020.01.013
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Article
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ISSN
0148-2963