- List of Figures
- List of Tables
- Summaries of Core Literature
- List of Contributors
- Charting the Landscape of Corporate Reputation Research
- Show Me the Money: A Multidimensional Perspective on Reputation as an Intangible Asset
- Keeping Score: The Challenges of Measuring Corporate Reputation
- What Does it Mean to Be Green? The Emergence of New Criteria for Assessing Corporate Reputation
- The Building Blocks of Corporate Reputation: Definitions, Antecedents, Consequences
- A Survey of the Economic Theory of Reputation: Its Logic and Limits
- Meeting Expectations: A Role-Theoretic Perspective on Reputation
- It Ain’t What You Do, it's Who You Do It With: Distinguishing Reputation and Status
- An Identity-Based View of Reputation, Image, and Legitimacy: Clarifications and Distinctions Among Related Constructs
- On Being Bad: Why Stigma is not the Same as a Bad Reputation
- Untangling Executive Reputation and Corporate Reputation: Who Made Who?
- Waving the Flag: The Influence of Country of Origin on Corporate Reputation
- Corporate Reputation and Regulation in Historical Perspective
- Industry Self-regulation as a Solution to the Reputation Commons Problem: The Case of the New York Clearing House Association
- How Regulatory Institutions Influence Corporate Reputations: A Cross-country Comparative Approach
- How Reputation Regulates Regulators: Illustrations from the Regulation of Retail Finance
- A Labor of Love? Understanding the Influence of Corporate Reputation in the Labor Market
- Does Reputation Work to Discipline Corporatemisconduct?
- From the Ground Up: Building Young Firms’ Reputations
- Strategic Disclosure: Strategy as A Form of Reputation Management
- Managing Corporate Reputation Through Corporate Branding
- After the Collapse: A Behavioral Theory of Reputation Repair
- A Framework for Reputation Management Over the Course of Evolving Controversies
Abstract and Keywords
This article tries to answer a fundamental question about the importance of reputation–does it actually work to discipline firm misconduct?– and also addresses the empirical research on the significance of reputational penalties for corporate misconduct. The reputational loss occurs because of direct impairments to the firm's ongoing operations, and also because counterparties alter the terms with which they are willing to continue to do business with the firm. The article then illustrates that firms engaging in many types of misconduct incur large reputational losses. In general, the data indicates that firms experience significant reputational losses when their misconduct imposes costs on their counterparties. Reputation plays a small role in disciplining environmental violations, and regulations and legal penalties play a more important role. Furthermore, there are large consequences for firms and managers that are caught engaging in misconduct.
Jonathan M. Karpoff is the Washington Mutual Endowed Chair in Innovation and Professor of Finance at the University of Washington. Jon's research seeks to understand how Adam Smith's Invisible Hand works, or does not work, to coordinate economic activities ranging from fisheries management to Arctic exploration to corporate governance. Jon teaches and seeks to inspire Executive, MBA, and Ph.D. finance students. He also serves as associate editor for several research journals, is past president of The Financial Management Association, and past director of the Univeristy of Washington's CFO Forum and Environmental Management Program.
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