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Purpose: This study aims to investigate the role of negative media coverage of environmental, social and governance (ESG) issues in deterring tax avoidance. Inspired by media agenda-setting theory and legitimacy theory, this study hypothesises that an increase in ESG negative media coverage should cause a reputational drawback, leading companies to reduce tax avoidance to regain their legitimacy. Hence, this study examines a novel channel that links ESG and taxation. Design/methodology/approach: This study uses panel regression analysis to examine the relationship between negative media coverage of ESG issues and tax avoidance among the largest European entities. This study considers different measures of tax avoidance and negative media coverage. Findings: The results show that negative media coverage of ESG issues is negatively associated with tax avoidance, suggesting that media can act as an external monitor for corporate taxation. Practical implications: The findings have implications for policymakers and regulators, which should consider tax transparency when dealing with ESG disclosure requirements. Tax disclosure should be integrated into ESG reporting. Social implications: The study has social implications related to the media, which act as watchdogs for firms' irresponsible practices. According to this study's findings, increased media pressure has the power to induce a better alignment between declared ESG policies and tax strategies. Originality/value: This study contributes to the literature on the mechanisms that discourage tax avoidance and the literature on the relationship between ESG and taxation by shedding light on the role of media coverage. [ABSTRACT FROM AUTHOR]

SUMMARY: We examine whether signing auditors' perceptions of bad luck related to the Chinese zodiac-year superstition affect audit quality. We argue that these perceptions of bad luck heighten signing auditors' sense of risk and lead them to act more cautiously in their zodiac years, leading to improved audit quality. We find that clients audited by lead engagement auditors in their zodiac years exhibit lower discretionary accruals and lower propensity to restate. The effects of zodiac-year superstition are evident among lead engagement auditors who are older and hold the partner title. The effects are also evident in large audit firms, which face greater reputation risk, and in provinces with a strong influence of traditional culture. In addition, we find some suggestive evidence that lead engagement auditors may increase audit effort during their zodiac years. Overall, our results support the contention that lead engagement auditors' zodiac year beliefs positively affect audit quality. JEL Classifications: D81; M40; M42; Z10. [ABSTRACT FROM AUTHOR]

Management of reputational risk is crucial for financial institutions to establish a solid foundation for strategic decisions, gain customer trust, and enhance resilience against environmental adversities, as they largely operate on digital platforms. Since this becomes even more significant as online transactions and digital interactions amplify the visibility and potential impact of reputational issues in the context of electronic commerce, it is essential to thoroughly investigate environmental factors to achieve a comprehensive understanding of reputational risk. However, measuring and evaluating their influence on reputational risk is challenging due to their inherent connection to human perception. This study aims to explore the factors influencing reputational risk of financial organizations to mitigate potential reputational losses by addressing uncertainties associated with concepts such as vagueness. The employed methodology integrates the Decision-Making Trial and Evaluation Laboratory and Fuzzy Cognitive Map techniques using linguistic fuzzy terms. This approach focuses on both the direct effects of factors on reputational risk and the indirect effects arising from interdependencies between factors. Linguistic fuzzy variables enable us to consider the hesitation of the experts and the vagueness of human judgment. To validate the results, factors are also weighted using the fuzzy Stepwise Weight Assessment Ratio Analysis (SWARA) method. The most influential factors identified by both methods are market value, revenue, risk culture, shareholder value, firm performance, reputation awareness, and return on equity. Additionally, factors affecting other factors include firm performance, revenue, and growth opportunities. [ABSTRACT FROM AUTHOR]

This study draws upon media agenda‐setting theory to investigate the relationship between negative media coverage around environmental, social, and governance (ESG) issues and the quality of integrated reporting (IR). In particular, we examine the top 100 South African listed companies in the 2013–2018 timeframe for 317 firm‐year observations. Our results reveal that IR quality is positively related to negative ESG media coverage. Thus, a company exposed to more media pressure issues higher‐quality IR consistent with its need to face scrutiny and potential reputational damage and to restore or maintain its legitimacy. Results are robust to different measures of negative ESG media coverage, controlling for ESG disclosures, and are confirmed by analyses aimed at addressing endogeneity (instrumental variable approach, firm‐fixed effects, and matched samples). Subsample analyses show that financial sector reputational concerns do not impact our results. Additional tests show no long‐term effects of negative media coverage on IR quality and that sustainability embeddedness alleviates a company's response to negative ESG news in terms of enhanced reporting. [ABSTRACT FROM AUTHOR]

Food loss and waste (FLW) continues to have economic, environmental, and reputational risks for retailers. However, standardised baseline data to engage this challenge is often absent in developing economies. We quantify FLW for all the retail outlets from a major retailer operating in southern Africa by using the World Resources Institute's FLW Accounting and Reporting Standard and its reporting template for three-month trial period. The data enabled us to reflect on the appropriateness of the Standard for retailers in these economies, which proved adequate subject to recommended changes to the template before implementation. [ABSTRACT FROM AUTHOR]

Copyright of Cuadernos.info is the property of Pontificia Universidad Catolica de Chile, Facultad de Comunicaciones and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Purpose: The concept of banking reputation has gained significant attention due to its relevance in the banking industry. A strong reputation has become crucial for a bank's success, as it affects trust, credibility and stakeholders' perceptions. However, understanding and managing reputation in the banking sector involves several challenges. This study aims to analyze the field of banking reputation research through bibliometric analysis. Design/methodology/approach: It explores the evolution of research in this area, identifies key journals, articles and authors, examines the main research streams, and identifies research fronts and opportunities for future advancement. Findings: The findings reveal that banking reputation research has evolved over time, with multiple perspectives and viewpoints. Key journals and authors in the field are identified, and leading research streams are highlighted. The study also uncovers the conceptual and intellectual structure of the research domain, providing insights into the complex and multidimensional nature of banking reputation. Furthermore, the study emphasizes the importance of corporate social responsibility, sustainability practices and gender diversity in shaping a bank's reputation. These factors play a significant role in attracting and retaining customers, accessing financial markets and securing funding. Research limitations/implications: The results contribute to the existing body of knowledge and provide researchers and practitioners with valuable insights for further exploration. Originality/value: The paper concludes by outlining potential avenues for future research in the field of banking reputation. [ABSTRACT FROM AUTHOR]

Purpose: The board structure (BS) is pivotal in modern corporate governance (CG). This study aims to investigate BS variables (BSIZE, BIND and chief executive officer [CEO] duality) and their correlation with risk-taking behavior indicators, enriching the understanding of how CG shapes financial institutions' (FIs) decision-making in Pakistan. Design/methodology/approach: By scrutinizing data from 67 financial entities listed on the Stock Exchange of Pakistan spanning from 2011 to 2022 through panel data regression techniques, the research emphasizes that BS holds a substantial influence over the risk tendencies exhibited by these firms. Findings: Key findings suggest that board size has a positive influence, aligned with previous CG research. Smaller boards perform better and avoid excessive risk-taking, contrasting some negative relationship claims. More independent directors are recommended to curtail risk and financial disruption. Holding both CEO and chair roles reduces risk exposure, resonating with reputational and employment risk theory. It is essential to recognize that BS's impact on risk-taking is nuanced and context-dependent. Practical implications: Policymakers, scholars, practitioners and investors working in the market for financial companies might greatly benefit from the empirical findings of this study. Imposing mandates on FIs to uphold adequate capital reserves functions as a safeguard against unforeseen losses, thereby diminishing the probability of unwarranted risk-taking. Originality/value: Prior studies in this domain predominantly focus on nonfinancial sectors. In addition, existing research often explores the relationship between BS and firm risk-taking solely within the banking sector, overlooking other FIs. This study contributes by using a comprehensive data set encompassing all types of FIs, thus extending the existing literature. [ABSTRACT FROM AUTHOR]

Using a novel sample covering 3783 US public firms from 2007 to 2020, we examine how negative media coverage of firm‐level environmental, social, and governance (ESG) practices affects a firm's debt choice. We find that firms with higher ESG reputation risk rely more on public bond than bank loan. The social and governance components, in particular, matter. Moreover, firms that receive more negative news coverage display a higher propensity to issue new bonds as opposed to securing new bank debt. Overall, our study presents empirical evidence on the relation between firm ESG reputation risk and debt financing. [ABSTRACT FROM AUTHOR]

This study examined how multinational corporations adapted their corporate social responsibility strategies while operating in russia during the ongoing war against Ukraine. Specifically, the analysis investigated the impact of different corporate social responsibility approaches on financial performance, stakeholder trust, and corporate reputation for multinational corporations operating in russia during the war. A game-theoretic model evaluated three distinct strategies: minimal corporate social responsibility engagement (Strategy 1), increased corporate social responsibility involvement (Strategy 2), and a complete exit from the russian market (Strategy 3). The quantitative analysis showed that companies choosing the exit strategy (Strategy 3) gained the highest payoffs for financial performance, stakeholder trust, and reputation. In contrast, minimal corporate social responsibility engagement (Strategy 1) resulted in negative outcomes, including reputational damage and potential exposure to sanctions. On the other hand, increased corporate social responsibility involvement (Strategy 2) produced neutral outcomes, offering short-term benefits but still leaving companies vulnerable to ongoing risks. The sensitivity analysis confirmed the stability of these outcomes. The study concludes that exiting the russian market not only aligns with ethical standards but also ensures long-term sustainability, offering critical insights for corporations navigating corporate social responsibility challenges in war zones. AcknowledgmentsWe sincerely express our gratitude to Prof. Dr. Dr. h.c. Marko Sarstedt, the LMU Fellowship Grant (LMU Ukraine support-fund) for the support of Ukrainian scientists.

The design of government subsidies is essential in supporting collaborative innovation and promoting sustainable development in R&D networks. This study explores the influence of different government subsidy strategies designed for R&D networks on inter-enterprise knowledge transfer. Drawing upon evolutionary game theory, it examines how impact is contingent upon enterprises' risk attitudes and reputation effects. The results indicate that when enterprises exhibit homogeneous risk attitudes, government subsidy policies encouraging risk-seeking behaviors can effectively enhance the knowledge-transferring level. When enterprises possess heterogeneous risk attitudes, a greater diversity of risk attitudes leads to a more conducive environment for knowledge transfer. Incorporating a rigorous reputation tolerance into the design of government subsidies in R&D networks can effectively elevate knowledge transfer. Therefore, policymakers can design tailored government subsidies and incentive mechanisms grounded in enterprises' risk attitudes and reputation effects. This study provides theoretical and policy implications for designing government subsidies and collaboration in R&D networks. [ABSTRACT FROM AUTHOR]

The global petroleum industry has been much maligned over the past 10–15 years for its involvement in foreign corrupt activities due to well-publicized instances of US-led prosecution for bribery of foreign public officials. Among the high-profile cases include the infamous Technip, Snamprogetti, Kellogg Brown & Root, JGC (TSKJ) conspiracy bribing Nigerian officials of the Bonny Island LNG terminal to the far-reaching Odebrecht/Petrobras Brazilian Lava Jato and more recent global Unaoil bribery scandals. What these cases and others have in common is the incidence of 'multi-jurisdictional' prosecution for foreign bribery rather than simply prosecution by US authorities as occurred prior to 2005. Through detailed quantitative analysis, we show how this multi-jurisdictional enforcement is a petroleum industry trend. The financial and reputational risk in terms of both likelihood and impact of a foreign bribery event has increased dramatically over the past 10 years. Despite this increased risk, we found little evidence of a risk-based compliance approach among industry participants. We show that the current practice of limiting liability is not an efficient risk-based approach towards corruption compliance and is not likely to meet new anti-corruption compliance guidelines by international regulators. Our research examines a possible cause-and-effect model behind this heightened corruption risk. We profile and describe the nature of the top 10 petroleum industry multi-jurisdictional bribery cases. We then provide a display of a corruption event's drivers, consequences, and barriers in the form of a risk-based 'bow-tie' diagram. Finally, we recommend ways the industry can move towards a more risk-based corruption compliance approach. [ABSTRACT FROM AUTHOR]

Objective: This article studies whether a firm's environmental, social, and governance (ESG) reputational risk influences board gender diversity. Besides, we are also interested in the moderating role of gender equality and country development level toward the relationship between reputational risk and board gender diversity. Method: Using a comprehensive sample of firms from 52 countries between 2007 and 2019, we employ multiple regression with fixed effects. Our findings remain robust when using alternative measures of variables and addressing endogeneity concerns by employing a two‐stage systems generalized method of moments estimation and an instrumental variable approach. Results: Companies with high levels of ESG reputational risk tend to add more women directors to resolve these problems. Furthermore, the empirical results point out that the positive impact of ESG reputational risk on board gender diversity is more pronounced for countries with a higher degree of gender equality or developed countries. Conclusions: Overall, our study is the first international study to link ESG reputational risk via media channels to board gender diversity. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to explore the ramifications of a lack of human resources (HR) representation in corporate boardrooms. Design/methodology/approach: The author draws upon her personal and professional experience as a director of human resources and as a board member for a corporation. Findings: There is a fundamental misunderstanding of the strategic value that HR brings to the table. To thrive in the modern business environment, organisations must acknowledge this strategic value and actively involve HR professionals in high-level decision-making processes. Originality/value: This study makes a strong and compelling case for HR's involvement in high-level decision-making in the boardroom. [ABSTRACT FROM AUTHOR]

In this article the authors explore the matching between the theory and practice of trust in audit and trustworthiness of Artificial Intelligence (AI). While AI does not have a theory of its own, it is an instrument that contributes to theory testing and has conceptual lenses of its own. The currently existing narrow AI has its limits in connecting to audit services. Document processing, data collection and structuring are among the possible functions, however, human supervision is needed as much as professional judgement. The effects of using AI in auditing practice are not clear yet and how reputational risk and independence are affected will be explored. Also, uncertainty dominates the cost benefits analysis in using AI powered technology and services in audits. There is a supply and demand of services in audit and advancements that go hand in hand with regulation of safety, consumer protection and sustainability. Both AI behaviour and audit practice are a matter of socially constructed functions where peer to peer review plays a great role in markets in terms of reputational risks and independence. [ABSTRACT FROM AUTHOR]

Copyright of SIRIUS - Zeitschrift fur Strategische Analysen is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study focuses on exploring the factors influencing why companies engage in greenhushing decisions in the cultural backgrounds of China and Republic of Korea. Structural equation modeling analysis indicates that in these two countries, reputational risk not only directly leads to corporate greenhushing behavior, but also exerts its influence through conservatism as a mediating factor. Reputational risk causes companies to exhibit conservatism, which in turn leads to the adoption of greenhushing behavior. Furthermore, tests for moderation effects revealed that, in the Chinese sample data, a transparent information disclosure mechanism has the ability to mitigate the impact of reputational risk on corporate greenhushing behavior, as well as to alleviate the influence of conservatism on corporate greenhushing behavior. In the South Korean sample data, a transparent information disclosure mechanism can moderate the impact of reputational risk on conservatism and corporate greenhushing behavior. Finally, the fsQCA method is tested to derive the different configurations and pathways that lead to the strong emergence of greenhushing behavior in companies in China and Republic of Korea, as well as to identify the most influential pathways. This study provides substantial theoretical support for further exploration of the causal mechanisms of corporate greenhushing behavior and promotion of cross‐cultural comparisons and learning in the international environmental management field. In addition, provides rich empirical support and theoretical guidance for corporate environmental management decision‐making and policy formulation. The findings highlight the further standardization and strengthening of transparent information disclosure mechanisms will be an important direction for future environmental policy development. [ABSTRACT FROM AUTHOR]

The impact of Corporate Social Responsibility with respect to Indigenous (CSRI) initiatives and issues on financial performance was studied using several CSRI metrics, both innovated (where necessary) and pre-existing (where possible). We find that CSRI initiatives based on dollar expenditures and firm website scores are positively associated with financial performance while increase to reputation risk has a negative impact. We also find that a CSRI score can only be moderated by an overall ESG score that is substantially stronger than the CSRI metric. In a world that increasingly emphasizes the importance of 'truth and reconciliation' with its Indigenous populations while meeting environmental resource needs, we must seek a path that recognizes and respects Indigenous rights and cultural practices. Providing well developed, consistently measured and acceptable CSRI metrics and assessing their impact on firm financial performance is a crucial step in this reconciliation process. This paper makes important contributions to that goal. [ABSTRACT FROM AUTHOR]

This paper considers the supplier investment decision-making problem in a supply chain consisting of an original equipment manufacturer (OEM), a global supplier, and a local supplier. To reduce dependence on global suppliers and improve supply stability, we develop a differential game model to investigate the optimal investment decisions of the OEM towards the local supplier under different risk scenarios and the impact of different risks on the optimal decisions. The results show that investment efficiency and risks have a significant impact on OEM investment decisions. Specifically, when the OEM has higher investment efficiency, investing in the local supplier is profitable for the OEM; conversely, when the investment efficiency of the OEM is lower, it does not invest. In addition, an increase in the supply risk of the global supplier will lower the entry threshold for OEM investment, but an increase in the supply risk of the local supplier and the reputational risk of both will increase this threshold, meaning that only the OEM with significantly higher investment efficiency can profit. [ABSTRACT FROM AUTHOR]

Reputation, monetary, risk, and workload incentives affect independent directors' decisions to join new or leave existing board of directors' seats, impacting their directorship portfolios. Using a director's perspective and relative incentive proxies, we find that directors strategically relinquish less prestigious board seats to increase their reputation. Similarly, we hypothesize and find that accepting an additional board nomination is incentivized by a director's goal to achieve higher reputation growth. Lastly, by taking on a firm's perspective, we find a positive association between the board's aggregated portfolio reputation and risk propensity with firm performance and earnings management. [ABSTRACT FROM AUTHOR]

Purpose – The gap that this research attempts to fill is to analyse the explanatory factor “industry” when assessing the reputation of a corporate group. In other words, this research attempts to demonstrate the impact of the “industrial halo” on the assessment of corporate reputation, given that, to date, the academic literature has not considered industry as an explanatory variable in the assessment of the reputation of private companies. Design/methodology/approach – A sample of 43 Spanish companies was used to analyse the relationship between the reputation of firms as measured by the Merco Empresas index, and the industries to which they belong, after controlling for company performance, size, turnover, public recognition of their leadership, and corporate responsibility. This involved conducting a cross-sectional analysis of the relationship between the variables for each year in the time period from 2005 to 2016. The available data were taken from the firms' annual financial reports and websites, as well as from the Merco. Findings – The paper shows the existence of industrial halos that account for the corporate reputation of businesses in Spain. It is also shown that industrial halos are not permanent over time, and that they tend to occur in years of crisis. Research limitations/implications – It would have been desirable for this study to have had sufficient data to include other industries, but this was not possible. As for possible extensions, in addition to expanding the period considered, other analytical techniques, such as panel data models, could be applied to allow comparison with the results obtained here. Practical and social implications – The results of this study have some practical implications. Firstly, firms that publish corporate reputation rankings should be aware of the distortion that the industrial halo can produce, especially in times of uncertainty, and seek to correct for it in their measurements. And secondly, corporate groups themselves should assume that the reputation of the industry affects their individual reputation, and consequently, they should see the other companies in the industry not only as competitors but also as “reputational allies”. They should therefore make collective efforts to improve in this respect, especially in the face of reputational crises. Originality/value – This paper provides a better understanding of the relationship between the reputation of a company and the industry to which it belongs, and of its permanence over time. This relationship has been little studied in the Spanish market to date. 研究目的 – 本研究擬分析當企業集團的信譽被評估時的解釋性因素-行業,以填補現時的研究缺口。具體來說,研究人員鑒於學術文獻至今仍未於評估私營企業的信譽時、把行業當作是一個解釋變量來看待,故擬進行研究、以顯示行業光環在評估企業信譽時所產生的影響。 研究設計/方法/理念 – 研究使用的樣本為43間西班牙公司。研究人員分析以Merco Empresas 指數來測量的公司信譽與公司所屬行業之間的關係。有關的分析調控了公司的業績、規模、營業額、企業責任、以及企業領導能力的公眾認可程度所帶來的影響。研究人員對有關變量間的關係進行橫向分析 分析於2005年至2016年期間年度性地進行。現有數據取自有關公司的年度財務報表和其網站,也有取自Merco的。 研究結果 – 研究結果表明了可解釋西班牙企業信譽的行業光環是存在的。研究結果亦顯示、行業光環不是永恆的,而且,行業光環往往會在營運極其困難的年度內出現。 研究的原創性/價值 – 本文讓我們更深入瞭解公司信譽與公司所屬行業之間的關係,以及其在時間上的永恆性。就這相關的關係而言,探討西班牙市場的研究至今為數不多。

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Regulatory agencies care about their reputation, which helps sustain their authority. As innovation can introduce uncertainty in governance, delaying action or overlooking danger can negatively affect agencies' standing. Aware of these reputation risks, agencies rely on a set of methods to govern the unknown. These methods, we argue, are: (1) categorization, if the innovation is considered identical to known regulatory categories; (2) analogy, if the innovation is considered similar to known categories, and; (3) new categorization, when new classifications are deemed necessary to address the innovation. Each method shapes governance by triggering the application of existing regulations (categorization and analogy), calls for either technical and regulatory fixes (analogy), or calls for broader regulatory undertakings (new categorization). Agencies' choice of methods, we argue, is shaped by concerns over performative reputation (i.e., showing the ability to fulfill core tasks), which in turn is affected by agencies' ability to demonstrate technical rigor (i.e., technical reputation). [ABSTRACT FROM AUTHOR]

Given the recent recurring cases of financial crime worldwide, national and international regulators have enacted new regulatory instruments intended to prevent or inhibit unlawful acts by banks and their representatives. These stricter regulations regarding the operations of financial institutions have reinforced the importance of best practices and the role of compliance within banks. Nonetheless, regulations regarding compliance structures and functions are not yet mandatory and give great flexibility to banks to define how they will set their compliance programmes. This research aims to understand how compliance functions have been implemented in the two largest banks in the UK and Brazil as a governance mechanism to fight financial crimes such as bribery and corruption. Document analyses of websites and financial reports of these banks examine disclosures provided by these corporations and shed light on the main drivers influencing their transparency regarding compliance functions, roles and responsibilities and their connections to the bank's operations and profitability goals. This research demonstrates that the implementation and enhancement of compliance functions in UK and Brazilian banks are driven by attempts to respond to regulatory requirements, social demands and as a reputational risk instrument, reflecting different levels of development in each institution. The maturity of these disclosures demonstrates that Brazilian banks present a more reactive attitude, justifying their investments in compliance according to minimum law requirements, while banks in the UK tend to have a more proactive perspective on their compliance initiatives, reinforcing their importance for the bank's competitive advantage and long-term continuity beyond regulatory compliance. [ABSTRACT FROM AUTHOR]

Copyright of European Journal of Management & Business Economics is the property of Emerald Publishing Limited and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Litigation risk and reputation protection are often cited in the literature as incentives for high quality audit services. This study examines whether reputation protection can motivate Big 4 auditors to provide higher quality audits in a low litigation risk audit market. We measure audit quality using accounting related enforcement actions against clients by securities regulators. Based on 7,011 firm-year observations of non-state-owned listed companies in China for the period of 2007 to 2015, we find no significant differences in either the frequency or severity of accounting related enforcement actions between Big 4 and non-Big 4 clients. Our findings indicate that reputational concerns alone cannot motivate Big 4 auditors to provide superior quality audit services in China's low litigation risk audit market. Given the large number of low litigation risk jurisdictions across the world, our findings highlight the importance of legal reforms for improving audit quality. [ABSTRACT FROM AUTHOR]

This study explores the relationship between environmental, social, and governance (ESG) reputational risk and investment efficiency. We provide evidence that ESG reputational risk relates to higher corporate suboptimal investment (underinvestment) and a lower speed of adjustment back to the optimal investment level. Our findings hold for parametric and nonparametric estimations of underinvestment and are robust to several techniques that address endogeneity and self‐selection. Overall, our study highlights the important role of ESG reputational risk in determining corporate investment efficiency. [ABSTRACT FROM AUTHOR]

Bredenkamp v Standard Bank of South Africa Ltd (SCA) and subsequent cases that followed this precedent exhibit that banks have the right to terminate the bank-customer relationship unilaterally. This right is usually entrenched in the contract between the bank and its customer and may also have its origin in an implied term of the contract. Some major banks in the Republic of South Africa have recently been under the spotlight for unilaterally terminating the bank-customer relationship with their customers (the Sekunjalo Group) based on reputational risks. It is alleged that in terminating the relationship, these banks unfairly discriminated against Sekunjalo Group, therefore asserting that the principle of reputational risk is not attributed similarly across customers of different racial groups. Whereas the paper does not intend to decide on such allegations of racial discrimination, the paper asserts that the unilateral termination of a bank-customer relationship is both a right and an obligation. The paper adopts a qualitative research approach in analysing the contractual nature of a bank-customer relationship, the common-law principles regarding the termination of the bank-customer relationship, and the developments in the application of the principle of reputational risk by South African banks and courts in the wake of the applications lodged by members of the Sekunjalo Group.

Copyright of Revista Anagramas is the property of Editorial Universidad de Medellin and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Public Administration is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Companies are under increasing pressure to manage their reputation on environmental, social, and governance (ESG) issues. Auditors are a potential source of ESG risk management expertise and assurance due to a deep understanding of their client's ESG-related reputation risk ("ESG risk") and their assurance reporting expertise. However, provision of nonaudit services by the external auditor is controversial and public accountants are still defining their role in ESG risk control and reporting. We explore whether auditors help companies manage heightened ESG risk in times of reputation crisis, using abnormal negative ESG-related media coverage as a measure of "tainted reputation." Findings show a positive association between tainted reputation and nonaudit services and between the interaction of tainted reputation and nonaudit services with future firm value. The positive interaction persists when we consider a proxy for other ESG risk management activities in our analyses and for other measures of ESG risk management effectiveness (future stock returns and future tainted reputation). Subsample analyses indicate that results are driven by companies audited by ESG industry specialist auditors, that the association between tainted reputation and nonaudit services is driven by companies owned by institutional shareholders, and that inferences from our results may not hold when ESG risk is dominated by its social component. Using restatements as a proxy, we find no evidence to suggest that the interaction of tainted reputation and nonaudit services is associated with impaired audit quality. Findings demonstrate an empirical linkage between tainted reputation and nonaudit services that is positively associated with future firm value measures. [ABSTRACT FROM AUTHOR]

We trace a corporate governance channel of bank shock transmission into the real economy. Using 1,245 U.S. bank enforcement actions (EAs) issued between 1990 and 2017, we show that when a nonfinancial firm (NFF) and bank share a common director, NFF stock prices fall around bank EAs. Severe EAs elicit more negative returns. During enforcement, valued directors substitute NFF board meeting attendance with bank board meeting attendance. Impaired credit relationships, director reputational damage, and endogenous director selection cannot fully explain our results. These findings imply that shared directors could transmit larger bank shocks into the real economy. [ABSTRACT FROM AUTHOR]

The purpose of this study is to determine the effect of reputational risk, credit risk, and operational risk on murabahah margin income with profit quality as a moderation variable in Islamic commercial banks, CAR and ROE as a Control Variable. This research uses secondary data from financial records or annual reports of 15 Sharia Commercial Banks and 20 Sharia Business Units written in the Financial Services Authority for 2011 to 20121. Using the Structural Equation Model based on Partial Least Squares, the research hypothesis was tested. Research findings show that reputation risk hurts murabahah margin income, credit risk has a significant positive effect on budget income, and there is a positive influence on operational risk competence of cheap margin income, there is a strong influence on profit quality in influencing murabahah margin income from reputation risk, there is a strong influence of profit quality in influencing margin income Murabahah from credit risk, there is a strong influence of profit quality in influencing murabahah margin income from operational risk. Implications, for reference materials for Islamic commercial banks in determining policies and performance planning to be achieved that will find related risks. Orsinil, this study presents new empirical findings on murabahah margin income on reputational risk, credit risk, and operational risk of Islamic Commercial Banks in Indonesia

A growing literature investigates how activists launch attacks against firms to improve environmental practices, a situation typically referred to as "private politics." Whether firms self-regulate in response has been shown to depend on reputational risks. However, reputation management in this literature is mostly reactive, whereas firms could be expected to anticipate and prevent reputation loss when faced with the threat of activism. How they would do so is not obvious, nonetheless, because firms have to consider two opposite effects: (1) a "reputational damage mitigation" effect, through which firms can pre-emptively align to what is expected from them, and (2) a "target enhancing" effect, in which self-regulation makes firms more visible and likely to be criticized. We show, theoretically and empirically, that these two effects actually co-exist and create heterogeneity in firms' responses when they witness activist attacks in their industry. The real impact of activism on the development of more sustainable practices is thus not only greater than if we solely considered the responses of firms that suffer direct attacks, as many firms start self-regulating before being targeted, but also varies within industries. [ABSTRACT FROM AUTHOR]

Acceleration in political support for critical minerals industry development is linked to securing resource supply chains essential to low carbon futures. This commentary reviews the Australian critical minerals agenda, scrutinising urgency claims engulfing the 'rush' to extract critical minerals. First, we define critical minerals and examine their 'criticality' in relation to decarbonisation and geopolitical motivations. The idea that the emergent industry is premised on an ethics of climate action conflicts with evidence that reputational risk and market shifts are driving companies. Second, we problematise urgency claims, arguing that crisis narratives and regulatory fast-tracking mask serious socio-environmental justice concerns, while neglecting material blockages. We distinguish the production of materials central to low carbon futures from localised social and environmental impacts of their extraction and processing, raising concerns over the absolution work performed by urgency claims. The burgeoning critical minerals industry presents an epochal moment to reconstitute mining differently to meet socio-environmental justice goals. Instead, as currently imagined, it extends a frontier mentality and existing models of extractivism, reproducing colonial-capitalist legacies. We conclude by advocating for counter-urgencies that foreground materiality and view critical minerals as policy commons, enabling debates on the shape of the critical minerals industry before it is fully established. [ABSTRACT FROM AUTHOR]

This paper examines the justification for the use of outsourcing by universities in Australia and the extent to which profit motives appear to outweigh the risks to the reputation of the university. Given that the universities have taken great care to arguably conceal the outsourcing of the education providers there are matters of concern that the students may perceive these actions as misleading or deceptive. In addition, the global ranking systems of universities have tended to place a greater emphasis on research rather than on the provision of education. The use of outsourcing would arguably appear to have some benefits for universities in the ranking process. However, if outsourcing should only be used for non-key activities and teaching would seem to be a key activity there seems to be an inconsistency. [ABSTRACT FROM AUTHOR]

Decentralisation is not a binary concept, but a spectrum. This paper presents a starting point for an objective discussion about the levels and risks related to decentralisation across ecosystem, consensus protocol, tokens and network distribution attributes for the largest networks of today — such as Bitcoin, Ethereum, Solana, Cardano, BNB Smart Chain, Polygon, Polkadot, Uniswap, Compound, AAVE, Curve, MakerDAO and Lido. The paper argues that it is imperative to identify, mitigate, monitor, measure and manage risks for a successful decentralised network to meet its business objectives, and emphasises that the true degree of decentralisation and risks in the network are shaped by the strengths and weaknesses of the design, and further affected by market forces creating a wide range of operational, technological, financial, strategic, legal and regulatory, reputational and business risks, among many. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this study is to examine the unique confluence of forces impacting global corporations in an era of geopolitical turmoil and the resources needed to respond to them. Design/methodology/approach: This viewpoint looks at contemporary accounts of trends in natural resources, renewable energy, US–China conflict and technology innovation to assess the new risks posed to global corporations. Findings: To manage risk in this new era of geopolitical turmoil, global corporations will need to become significantly better resources in expertise relating to technical areas such as mining, AI, trade and renewable energy. Originality/value: While the forces described have been discussed before, the author believes that, to the best of his knowledge, this is the first attempt to assess their impact from the perspective of corporate reputation risk. [ABSTRACT FROM AUTHOR]

Companies engaging celebrity athlete endorsers or sponsoring sports teams experience negative stock price impacts if athletes engage in inappropriate behavior. Most previous research assumed homogeneity in the impact of misconduct on stock prices. The authors investigated the possibility that different types of misconduct generate different impacts on stock prices. Results from a number of event study models using 863 incidents of off-field misconduct by National Football League players revealed substantial heterogeneity in the impact of these incidents. Crimes that harmed others and incidents receiving media attention generated larger negative returns. [ABSTRACT FROM AUTHOR]

The success of banking institution directly depends not only on the quality of provided services, but also on the reputation of bank on the market. This issue is especially acute for the bank, since its effectiveness largely depends on the behavior and degree of trust in it by customers, creditors, the state, counterparties and partners. Therefore, for the banking business, the threat of reputation loss has taken one of the first places in the list of the most significant risks. The article substantiates the theoretical and methodological principles for improving the management system of reputational risk in banking. The object of the research is the process of managing the reputational risk in banks, and the subject of the research is theoretical and methodical approaches to the management of reputational risk in banks. The study of scientific works of foreign and domestic scientists and the regulatory framework made it possible to generalize the main approaches to the interpretation of the concept of "reputational risk". It has been found that most of the authors of the considered methodical approaches concerning reputation and risk in banks do not distinguish between the concepts of "business reputation" and "reputational risk". Reputation risk is associated with the loss of business reputation, trust and loyalty to the bank on the part of customers and partners, i.e. concerns the management of relations with interested persons. It has been proven that reputation risk can arise as a result of other types of banking risks, or the appearance of such factors as information asymmetry. It has been established that the main measures to minimize the risk of loss of business reputation (reputational risk) in banks are: the implementation of an appropriate information policy, which would involve the publication of information about the bank on the bank's official website and in the mass media, aimed at maintaining the positive reputation of the bank and its image; the participation in thematic conferences, meetings and current interaction with participants of the financial market, settlement of disputed issues by clients and partners of the bank in working order.

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