Advanced Search
MyIDEAS: Login to save this article or follow this journal

Quantifying reputational effects for publicly traded financial institutions


Author Info

Registered author(s):


    This paper aims to measure reputational effects for financial institutions by examining a firm‟s stock price reaction to the announcement of particular operational loss events such as internal frauds. For this purpose we conduct an event study analysis of the impact of operational loss events on the market values of banks and insurance companies, using the OpVar database (OpData® dataset supplied by OpVantage®). This analysis concerns a number of publicly reported banking and insurance operational risk events affecting publicly traded U.S. or European institutions from 2000 to 2006 that caused operational losses of at least U.S.$20 million – a total of 20 bank and insurance company events. We estimate for these institutions the cumulative abnormal returns and find that stock prices react immediately and negatively to announcements of operational losses due to internal frauds. We conclude our analysis by estimating the „reputational value-at-risk‟ at a given confidence level, which represents the economic capital needed to cover reputational losses over a specified holding period with a specific confidence level.

    Download Info

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Bibliographic Info

    Article provided by Capco Institute in its journal Journal of Financial Transformation.

    Volume (Year): 27 (2009)
    Issue (Month): ()
    Pages: 76-81

    as in new window
    Handle: RePEc:ris:jofitr:1388

    Contact details of provider:
    Postal: 120 Broadway, 29th Floor New York, NY 10271
    Phone: +1 212 284 8600
    Web page:

    Related research

    Keywords: Reputational risk; financial institutions;

    Find related papers by JEL classification:


    No references listed on IDEAS
    You can help add them by filling out this form.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Jose Manuel Feria-Dominguez & Enrique Jimenez-Rodriguez & Ines Merino Fernandez-Galiano, 2013. "Isolating the corporate reputational risk in environmental oil spill disasters," Working Papers, Universidad Pablo de Olavide, Department of Financial Economics and Accounting (former Department of Business Administration) 13.02, Universidad Pablo de Olavide, Department of Financial Economics and Accounting (former Department of Business Administration).


    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


    Access and download statistics


    When requesting a correction, please mention this item's handle: RePEc:ris:jofitr:1388. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Springett).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.