Reputational damage and name changes: Impact of financial crimes
研究美国金融公司更名与声誉问题的关系，发现公司通过更名摆脱声誉危机，但投资者对此反应负面，且更名后公司业绩下滑。
Abstract Research Question This study examines the relation between reputational issues and name‐change decisions among US financial firms. I examine if financial firm name changes are related to reputational concerns and whether or not financial firms try to distance themselves from misconduct by adopting a new name. Research Findings/Insights I document that firms adopt a new name to disassociate themselves from reputational concerns. I find that investors react negatively to name‐change announcements for firms with reputational issues. My findings also suggest significant corporate upheaval following misconduct, such as dampening performance. Theoretical/Academic Implications My research is the first to investigate market reactions to name changes in the US financial industry. My paper utilizes several unique hand‐collected datasets of corporate wrongdoings, violations, frauds, and other financial crimes to measure firm reputation and test whether name changes are related to reputational concerns. Practitioner/Policy Implications I not only measure pre‐event misconducts for name changes but also analyze the future firm performance following financial misrepresentations. My paper adds to the growing literature of firm reputation, brand image, and firm value.