The value of reputation capital during the COVID-19 crisis: Evidence from Japan

This study investigates the value of reputation capital with regard to the stock market crash in the early stages of the COVID-19 pandemic. At that time, when stock prices fell precipitously, firms with a positive reputation for the usefulness of products/services seen from within their business net...

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Detalles Bibliográficos
Autores principales: Manabe, Tomonori, Nakagawa, Kei
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier Inc. 2022
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8994446/
https://www.ncbi.nlm.nih.gov/pubmed/35431678
http://dx.doi.org/10.1016/j.frl.2021.102370
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author Manabe, Tomonori
Nakagawa, Kei
author_facet Manabe, Tomonori
Nakagawa, Kei
author_sort Manabe, Tomonori
collection PubMed
description This study investigates the value of reputation capital with regard to the stock market crash in the early stages of the COVID-19 pandemic. At that time, when stock prices fell precipitously, firms with a positive reputation for the usefulness of products/services seen from within their business network showed stock returns five to seven percentage points higher than firms with a low reputation score. This suggests a positive reputation among stakeholders can serve as insurance against shocks in times of crisis. Notably, results suggest firms that can build public trust owing to the usefulness of the product/service are more resilient from crash caused by real economic damage, as occurred with the COVID-19-related crash.
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spelling pubmed-89944462022-04-11 The value of reputation capital during the COVID-19 crisis: Evidence from Japan Manabe, Tomonori Nakagawa, Kei Financ Res Lett Article This study investigates the value of reputation capital with regard to the stock market crash in the early stages of the COVID-19 pandemic. At that time, when stock prices fell precipitously, firms with a positive reputation for the usefulness of products/services seen from within their business network showed stock returns five to seven percentage points higher than firms with a low reputation score. This suggests a positive reputation among stakeholders can serve as insurance against shocks in times of crisis. Notably, results suggest firms that can build public trust owing to the usefulness of the product/service are more resilient from crash caused by real economic damage, as occurred with the COVID-19-related crash. Elsevier Inc. 2022-05 2021-08-17 /pmc/articles/PMC8994446/ /pubmed/35431678 http://dx.doi.org/10.1016/j.frl.2021.102370 Text en © 2021 Elsevier Inc. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Article
Manabe, Tomonori
Nakagawa, Kei
The value of reputation capital during the COVID-19 crisis: Evidence from Japan
title The value of reputation capital during the COVID-19 crisis: Evidence from Japan
title_full The value of reputation capital during the COVID-19 crisis: Evidence from Japan
title_fullStr The value of reputation capital during the COVID-19 crisis: Evidence from Japan
title_full_unstemmed The value of reputation capital during the COVID-19 crisis: Evidence from Japan
title_short The value of reputation capital during the COVID-19 crisis: Evidence from Japan
title_sort value of reputation capital during the covid-19 crisis: evidence from japan
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8994446/
https://www.ncbi.nlm.nih.gov/pubmed/35431678
http://dx.doi.org/10.1016/j.frl.2021.102370
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