What is it about?
We identify 241 cases of response to the Russia-Ukraine conflict pertain-ing to U.S-based multinational B2B corporations. This includes 34 cases of no withdrawal (i.e., nocommunication) and 207 cases of announcements about the firm’s intent to withdraw from Russia.For these cases, we calculate the actual scale of withdrawal (Actual Divestment Index) based on thedata from Federal Tax Service of Russia and the Central Bank of the Russian Federation. Considering Actual Divestment Index as a fractional measure, we conduct fractional logit regression analysis,where the effect of the withdrawal communication on Actual Divestment Index is interpreted asthe corporate honesty effect.
Featured Image
Why is it important?
Marketing managers of multinational B2B firms must endeavor to maintainthe stakeholder perceptions of corporate legitimacy by constantly monitoring the level of corpo-rate honesty effect, specifically during the time of war-induced disruptions and turmoil in B2Bmarkets. Managers of B2B firms with larger resources, better profitability, and deeper marketexposure can leverage their advantageous position to further highlight and promote their actualperformance in this aspect to assuage the concerns and negative sentiments of stakeholders
Perspectives
Controlling for variables such as firm size, leverage, return on assets, institutional own-ership, entry mode, and industry, the analysis reveals that the scope of intended withdrawal –reflected in the stages of no action, non-essential pullout, suspension, partial core, and full corewithdrawal – is positively associated with the observed level of divestment. The findings furthershow that firms with larger corporate resources, higher profitability, and deeper local marketexposure exhibit a greater level of corporate honesty.
Dr. Abdulaziz Aliev
Tashkent State University of Economics
Read the Original
This page is a summary of: The Corporate Honesty Effect and Its Boundary Conditions: B2B Firms’ Communications on Withdrawal from Russia, Journal of Business-to-Business Marketing, July 2024, Taylor & Francis,
DOI: 10.1080/1051712x.2024.2380691.
You can read the full text:
Contributors
The following have contributed to this page
