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Please use this identifier to cite or link to this item: http://hdl.handle.net/2451/27392

Title: Reputational Risk and Conflicts of Interest in Banking and Finance: The Evidence So Far
Authors: Walter, Ingo
Keywords: Operational Risk
Reputation
Conflicts of Interest
Issue Date: 20-Dec-2006
Series/Report no.: FIN-06-033
Abstract: This paper attempts define reputational risk in financial intermediation and to identify the proximate sources of reputational risk facing financial services firms. It then considers the key drivers of reputational risk in the presence of transactions costs and imperfect information in financial markets, surveys empirical research in the literature on the impact of reputational losses imposed on financial intermediaries, and presents some new empirical findings. The paper then develops the link between reputational risk and exploitation of conflicts of interest in financial intermediation, arguably one of the most important threats to the reputational capital of financial firms. Finally, it considers some managerial requisites for dealing with both reputational risk and conflicts of interest.
URI: http://hdl.handle.net/2451/27392
Appears in Collections:Finance Working Papers

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