Business

What drives reputational risk? Evidence from textual risk disclosures in financial statements

X. Zhu, Y. Wang, et al.

This fascinating research by Xiaoqian Zhu, Yinghui Wang, and Jianping Li explores the critical drivers of reputational risk within U.S. financial institutions. By analyzing risk disclosures from thousands of annual reports, the study uncovers 13 significant risk drivers and their evolution over time, providing valuable insights for risk management.

00:00

Playback language: English

Index

Abstract

This paper investigates the drivers of reputational risk, a crucial yet under-researched area, especially for financial institutions. The authors analyze textual risk disclosures from 11,921 annual reports (Form 10-K) of 1570 U.S. financial institutions from 2006-2019. Using a modified Sentence-latent Dirichlet allocation (Sent-LDA) text mining method, they identify 13 reputational risk drivers, extending existing literature. The study quantifies the importance of these drivers and analyzes their evolution over time, revealing insights for proactive risk management and future quantitative research.

Publisher

Humanities and Social Sciences Communications

Published On

Sep 16, 2022

Authors

Xiaoqian Zhu, Yinghui Wang, Jianping Li

Related Publications

Explore these studies to deepen your understanding of the subject.

Medicine and Health

What can hospital emergency admissions prior to cancer diagnosis tell us about socio-economic inequalities in cancer diagnosis? Evidence from population-based data in England

A. Exarchakou, B. Rachet, et al.

Education

World-wide barriers and enablers to achieving evidence-informed practice in education: what can be learnt from Spain, England, the United States, and Germany?

J. R. Malin, C. Brown, et al.

Economics

The spatial spillover effect of financial growth on high-quality development: Evidence from Yellow River Basin in China

Z. Zhang, C. Hua, et al.

Education

What are the determinants of rural-urban divide in teachers' digital teaching competence? Empirical evidence from a large sample

R. Lin, J. Chu, et al.

Listen, Learn & Level Up

Over 10,000 hours of research content in 25+ fields, available in 12+ languages.

No more digging through PDFs, just hit play and absorb the world's latest research in your language, on your time.

listen to research audio papers with researchbunny