@article{e28cc90a1d114727b64b984f8d631440,
title = "Exploring the dark side of third-party certification effect in B2B relationships: A professional financial services perspective",
abstract = "This paper extends the growing research on the dark side of B2B relationships by exploring the differences in third-party certification effects based on social capital with professional financial services firms, using a proprietary dataset with confidential voting records of the nominations for Investor Relation Awards in Hong Kong. Results confirm the dark side of these relationships by showing that the nominated firms with more favorable voting from international (vs. local) analysts experience stronger certification effect with higher valuations upon announcement. Moreover, nominated (but not awarded) firms with lower levels of information transparency demonstrate a larger certification effect but they also show significant improvement in their information transparency after the event, which represents an unexpected bright outcome from this dark side of B2B relationships. Overall, these findings extend the social capital argument that international financial services firms bring higher positive return through the support of their own professional and social network.",
keywords = "B2B relationships, Certification effect, Dark side, Investor relations, Social capital",
author = "Cheng, {Louis T.W.} and Piyush Sharma and Jianfu Shen and Ng, {Allen C.C.}",
note = "Funding Information: The authors express their gratitude to Hong Kong Investor Relations Association (HKIRA) for providing the proprietary voting data for this research. They are also grateful to Katherine Schipper, James Ohlson, and seminar participants at the 2018 International Conference in Accounting, Finance, Economics, and Law (ICAFEL) and the CFA Society workshops in Hong Kong, Shenzhen, and Shanghai. Shen acknowledges a research grant (P0030199) from the Hong Kong Polytechnic University. Funding Information: The authors express their gratitude to Hong Kong Investor Relations Association (HKIRA) for providing the proprietary voting data for this research. They are also grateful to Katherine Schipper, James Ohlson, and seminar participants at the 2018 International Conference in Accounting, Finance, Economics, and Law (ICAFEL) and the CFA Society workshops in Hong Kong, Shenzhen, and Shanghai. Shen acknowledges a research grant (P0030199) from the Hong Kong Polytechnic University. Publisher Copyright: {\textcopyright} 2021 Elsevier Inc. Copyright: Copyright 2021 Elsevier B.V., All rights reserved.",
year = "2021",
month = apr,
doi = "10.1016/j.jbusres.2021.01.031",
language = "English",
volume = "127",
pages = "123--136",
journal = "Journal of Business Research",
issn = "0148-2963",
publisher = "Elsevier Inc.",
}