In this paper I study the stock market reaction to the announcement of operational losses in European financial companies. Accounting for the effect of the nominal loss amount allows for an examination of the reputational damage caused by operational loss events. The analysis is based on a...

We examine bond market reactions to the announcement of operational losses by financial companies. Thanks to the fact the corporate debt is senior to equity, we interpret the cumulated abnormal returns on the bond market of the companies having suffered those losses as a pure reputational impact...

The central function of a bank inherently exposes it to various financial risks where each of these risks has the possibility to influence stakeholders' perception. This perception, which is linked to the trustworthiness, credibility and performance of the bank, translates into the reputation of...