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Economists have advocated, and courts have accepted a decline in the stock price of a defamed corporation as an economic measure of its reputational harm. Although the economic rationale for this approach is sound and widely accepted, its legal foundations and consistency with the damages...
Persistent link: https://www.econbiz.de/10013134503
In this paper, we build a Kiyotaki-Moore style collateral amplification framework which generates large endogenous fluctuations in the leverage available to investing firms. We assume that defaulting borrowers lose not only their tangible collateral but also their future debt market access. The...
Persistent link: https://www.econbiz.de/10013099028
Reputation is growing as a very important asset in everyday corporate life and it is even crucial for financial … corporations. The main financial institutions consider reputation as one of the six risk factors to be managed by any corporation …
Persistent link: https://www.econbiz.de/10013107485
This paper studies the reputation effect in which a long-lived player faces a sequence of uninformed short …
Persistent link: https://www.econbiz.de/10013087097
business, are particularly vulnerable. Maintaining a positive reputation, however, is costly, leading to the potential for …
Persistent link: https://www.econbiz.de/10013088818
interest in reputation. The bijection between defamation and reputation is typically thought of as perfect: defamation only … protects reputation, while reputation is only protected by defamation. This article shows, however, that neither limb of the … of negligence could not prima facie extend the scope of its protection to reputation. It might seem that the fact that …
Persistent link: https://www.econbiz.de/10013066653
The Klein-Leffler model explains how the benefit of future reputation can induce firms to produce high quality … experience goods, either in a monopoly or an industry with competing firms. We show that reputation can be leveraged across …
Persistent link: https://www.econbiz.de/10013066802
Economists have advocated, and courts have accepted a decline in the stock price of a defamed corporation as an economic measure of its reputational harm. Although the economic rationale for this approach is sound and widely accepted, its legal foundations and consistency with the damages...
Persistent link: https://www.econbiz.de/10013158789