This study examines spillover effects following Volkswagen's admission of emissions cheating. We first estimate initial operational losses of 8.45% of Volkswagen's equity market capitalization on the date before the announcement, reputational losses up to five times these losses, and significant...

This study examines spillover effects following Volkswagen's admission of emissions cheating. We first estimate initial operational losses of 8.45% of Volkswagen's equity market capitalization on the date before the announcement, reputational losses up to five times these losses, and significant...

It has been shown in the empirical literature that operational losses of financial firms can cause severe reputational losses, which, however, are typically not taken into account when modeling and assessing operational risk. The aim of this paper is to fill this gap by assessing the...