{"title":"Corporate wrongdoing and board leadership structure: An analysis of the WestJet spying scandal","authors":"Shamsud D. Chowdhury, Jerry Paul Sheppard","doi":"10.1002/cjas.1678","DOIUrl":null,"url":null,"abstract":"<p>This study focuses on corporate espionage undertaken by WestJet Airlines, Canada's second largest air carrier. Employing a case study, we examine how board leadership-endorsed internet snooping affected WestJet's board structure and performance. We also paired the case study with an event study methodology to enhance the case narrative and illustrate market responses to continuing revelations of WestJet's espionage over time. We find that investors initially discounted WestJet's value then over time reacted more to market changes and positive scandal-related outcomes. WestJet withstood the adverse effects of wrongdoing and regained investor confidence and profitability via substantive and symbolic changes to their board leadership structure. The study's theoretical and practical implications are also given.</p>","PeriodicalId":47349,"journal":{"name":"Canadian Journal of Administrative Sciences-Revue Canadienne Des Sciences De L Administration","volume":"39 4","pages":"381-395"},"PeriodicalIF":1.2000,"publicationDate":"2022-06-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Canadian Journal of Administrative Sciences-Revue Canadienne Des Sciences De L Administration","FirstCategoryId":"91","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/cjas.1678","RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
This study focuses on corporate espionage undertaken by WestJet Airlines, Canada's second largest air carrier. Employing a case study, we examine how board leadership-endorsed internet snooping affected WestJet's board structure and performance. We also paired the case study with an event study methodology to enhance the case narrative and illustrate market responses to continuing revelations of WestJet's espionage over time. We find that investors initially discounted WestJet's value then over time reacted more to market changes and positive scandal-related outcomes. WestJet withstood the adverse effects of wrongdoing and regained investor confidence and profitability via substantive and symbolic changes to their board leadership structure. The study's theoretical and practical implications are also given.
期刊介绍：
The Canadian Journal of Administrative Sciences (CJAS) is a multidisciplinary, peer-reviewed, international quarterly that publishes manuscripts with a strong theoretical foundation. The journal welcomes literature reviews, quantitative and qualitative studies as well as conceptual pieces. CJAS is an ISI-listed journal that publishes papers in all key disciplines of business. CJAS is a particularly suitable home for manuscripts of a crossdisciplinary nature. All papers must state in an explicit and compelling way their unique contribution to advancing theory and/or practice in the administrative sciences.
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