American Economic Journal:
Microeconomics
ISSN 1945-7669 (Print) | ISSN 1945-7685 (Online)
Names and Reputations: An Empirical Analysis
American Economic Journal: Microeconomics
vol. 3,
no. 3, August 2011
(pp. 193–209)
Abstract
This paper tests several predictions from the literature on firm reputation, and confirms a main result: poor performance leads a firm to conceal its reputation. A residential plumbing firm with a record of complaints one standard deviation above the mean is 133.2 percent more likely to change its name. In addition, firms with longer track records are less likely to change their names or exit, while firms with more firm-specific investments, such as advertising, are more likely to change their names than exit. In addition, firms in small markets value their reputations comparatively more than firms in large markets. (JEL L14, L25, L84)Citation
McDevitt, Ryan C. 2011. "Names and Reputations: An Empirical Analysis." American Economic Journal: Microeconomics, 3 (3): 193–209. DOI: 10.1257/mic.3.3.193Additional Materials
JEL Classification
- L14 Transactional Relationships; Contracts and Reputation; Networks
- L25 Firm Performance: Size, Diversification, and Scope
- L84 Personal, Professional, and Business Services
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