Empirical Evidence on the Impact of Corporate Reputation and Banks and Auditors’ Decisions
摘要
This chapter empirically examines the impact of corporate reputation on banks’ and auditors’ decisions, emphasizing its role in mitigating information asymmetry and shaping stakeholder interactions. On one hand, the analysis explores how corporate reputation influences a bank’s decision to grant loans and affects the cost of debt. On the other hand, it investigates the role of reputation in auditor-client relationships, analysing its effect on the provision of audit and non-audit services as well as audit fees. The study focuses on Italian-listed non-financial firms from 2014 to 2023, employing multiple measurement approaches to assess corporate reputation. The results highlight that corporate reputation positively influences access to bank financing by reducing borrowing costs while also affecting auditors’ engagement and pricing strategies. However, the findings confirm the context- and measurement-sensitive nature of reputation, as different reputation indicators yield varying results. This study contributes to the literature by demonstrating the strategic value of corporate reputation in financial and auditing relationships.