We conduct three experiments to examine the implications of corporate apologies on
investors' reactions to allegations of financial misconduct. In Experiment 1, we manipulate
whether the firm apologizes or denies the misconduct. Additionally, we manipulate how the
firm apologizes for (denies) the misconduct by comparing “basic” response strategies (ie,
responses containing nothing more than a simple apology or denial) with “full” response
strategies (ie, responses containing additional elements, such as explicitly naming the …