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dc.contributor.authorBarakat, Ahmed
dc.contributor.authorAshby, Simon
dc.contributor.authorFenn, Paul
dc.date.accessioned2019-04-22T19:16:35Z
dc.date.available2019-04-22T19:16:35Z
dc.date.issued2018en_US
dc.identifier.issn1057-5219
dc.identifier.doi10.1016/j.irfa.2017.10.011
dc.identifier.urihttp://hdl.handle.net/20.500.12127/6237
dc.description.abstractThis paper investigates whether more favorable stock recommendations and higher credit ratings serve as a reputational asset or reputational liability around reputation-damaging events. Analyzing the reputational effects of operational risk announcements incurred by financial institutions, we find that firms with a “Buy” stock recommendation or “Speculative Grade” credit rating are more likely to incur an equity-based reputational damage. In addition, firms with lower credit ratings incur a much more severe debt-based reputational damage. Moreover, credit ratings are more instrumental in mitigating the debt-based reputational damage caused by fraud incidents or incurred in non-banking activities. Furthermore, the misconduct of senior management could demolish the reputation of firms with less heterogeneous stock recommendations. Finally, credit ratings serve as an equity-based reputational asset in the short term but turn into an equity-based reputational liability in the long term. Overall, our analysis reveals that stock recommendations represent a reputational burden and credit ratings act as a reputational shield; however, the persistence and magnitude of such reputational effects are moderated by time and event characteristics.en_US
dc.language.isoenen_US
dc.publisherElsevieren_US
dc.subjectReputational Risken_US
dc.subjectOperational Risken_US
dc.subjectFinancial Analystsen_US
dc.subjectStock Recommendationsen_US
dc.subjectCredit Ratingsen_US
dc.subjectFinancial Institutionsen_US
dc.titleThe reputational effects of analysts' stock recommendations and credit ratings: Evidence from operational risk announcements in the financial industryen_US
refterms.dateFOA2019-04-26T09:32:00Z
dc.identifier.journalInternational Review of Financial Analysisen_US
dc.source.volume55en_US
dc.source.issue1en_US
dc.source.beginpage1en_US
dc.source.endpage22en_US
dc.contributor.departmentUniversity of Nottinghamen_US
vlerick.knowledgedomainAccounting & Financeen_US
vlerick.knowledgedomainSpecial Industries : Financial Services Managementen_US
vlerick.typearticleJournal article with impact factor
vlerick.vlerickdepartmentAFen_US
dc.identifier.vperid258194en_US


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