The Effects of the Financial Crisis on the Organizational Reputation of Banks: An Empirical Analysis of Newspaper Articles

49 Pages Posted: 26 Sep 2018

See all articles by Mario Rudolf Englert

Mario Rudolf Englert

LAUDA DR. R. WOBSER GMBH & CO. KG

Christopher Koch

Johannes Gutenberg University Mainz - Gutenberg School of Economics and Management

Jens Wüstemann

University of Mannheim - Accounting and Taxation

Date Written: September 5, 2018

Abstract

The recent financial crisis has triggered an intense debate about the role of banks in society, presumably changing the criteria used in the evaluation of organizations. Against this backdrop, we investigate the changing role of banks’ organizational features in shaping different dimensions of banks’ organizational reputation. Using the media as an important evaluator, we measure the reputational dimension of visibility based on the frequency of newspaper articles and the reputational dimension of favorability based on the sentiment of newspaper articles. Drawing on social judgment research for developing our hypotheses, we expect that organizational features such as financial performance and familiarity become more important determinants of organizational reputation in times of crisis. Our results support this expectation, suggesting stronger effects of these organizational features on the visibility and favorability of banks during a crisis. These findings provide novel empirical evidence on how the importance of drivers of organizational reputation changes in times of crisis and highlight areas for managerial attention.

Keywords: Organizational Reputation, Social Judgments, Financial Crisis, Organizational Features

JEL Classification: G20, L14, M14

Suggested Citation

Englert, Mario Rudolf and Koch, Christopher and Wüstemann, Jens, The Effects of the Financial Crisis on the Organizational Reputation of Banks: An Empirical Analysis of Newspaper Articles (September 5, 2018). Available at SSRN: https://ssrn.com/abstract=3244567 or http://dx.doi.org/10.2139/ssrn.3244567

Mario Rudolf Englert

LAUDA DR. R. WOBSER GMBH & CO. KG ( email )

Lauda-Königshofen
Germany

Christopher Koch (Contact Author)

Johannes Gutenberg University Mainz - Gutenberg School of Economics and Management ( email )

Mainz
Germany
+49 (6131) 3929990 (Phone)

HOME PAGE: http://https://www.cg.bwl.uni-mainz.de/

Jens Wüstemann

University of Mannheim - Accounting and Taxation ( email )

Mannheim, 68131
Germany

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