Abstract: When an organization’s response to a negative event reflects a discrepancy between words and deeds, there is a risk that it will be perceived as impression management. Using a two-stage Heckman Probit model with the stock market reaction after a negative event in the fast-moving consumer goods industry as the dependent variable, this paper examines the effect of public certification, the risk and the factors influencing the perception of risk in a product quality crisis situation. The results show that a company’s disclosure of the certification can reduce abnormal stock market returns after a negative event; however, when the threat is in the same domain as the organization’s held certification, the risk of being questioned negatively moderates the effect of public certification on its abnormal stock market volatility. The findings further suggest that the higher the organization’s domain-specific reputation, the greater the negative moderating effect of questioned risk; the greater the perceived authority of the organization’ s public certification, the greater the negative moderating effect of questioned risk. This paper explores investors’ reactions to the impression management rhetorical symbol of public certification in corporate crisis scenarios, providing theoretical support for the strategic risks that should be considered when communicating with external parties, while depicting the boundary conditions of perceived risk when organizations engage in impression management and stimulating reflection on long-held communication perspectives.

Key words: crisis scenarios, certification publicized, impression management risks, investor reaction