Abstract
We examine economic benefits of a firm's corporate reputation by investigating the association between its media reputation and properties of trade payables in a sample of listed UK firms. Our results document a significant positive association between a firm's overall media reputation and both the level of its trade accounts payable and the number of days of trade credit received, suggesting that a favourable media reputation affects suppliers’ credit risk perception of the firm and facilitates the firm's use of trade credit as a source of finance.
| Original language | English |
|---|---|
| Pages (from-to) | 19-29 |
| Journal | European Management Journal |
| Volume | 33 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - Feb 2015 |
Keywords
- corporate reputation
- media reputation
- trade credit use
- information asymmetry
- credit risk