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

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.

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