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Reputational Loss Associated with Regulatory Sanctions in Scandinavia

Jalrup, Lovisa LU (2019) NEKH02 20191
Department of Economics
Abstract
The purpose of this thesis is to determine if there is reputational harm as a consequence to
a regulatory sanction. The focus of the thesis is the Scandinavian countries after the global
financial crisis. To confirm if there is reputational losses associated with regulatory violations,
an event study of abnormal returns was employed. The regulator, as well as the company in
violation of regulation, has a need to understand the total financial loss following a regulatory
enforcement action. The total loss for a publicly listed entity is twofold, one part being the
administrative penalty given by the regulator, and the other being the penalty posed on the share
price by the market reacting to the bad news of a regulatory violation. In... (More)
The purpose of this thesis is to determine if there is reputational harm as a consequence to
a regulatory sanction. The focus of the thesis is the Scandinavian countries after the global
financial crisis. To confirm if there is reputational losses associated with regulatory violations,
an event study of abnormal returns was employed. The regulator, as well as the company in
violation of regulation, has a need to understand the total financial loss following a regulatory
enforcement action. The total loss for a publicly listed entity is twofold, one part being the
administrative penalty given by the regulator, and the other being the penalty posed on the share
price by the market reacting to the bad news of a regulatory violation. In Scandinavia the legal
penalty constitutes of, on average, one eighth of the total financial loss which consequently
imply reputational losses following the affirmation of corporate wrongdoings in Scandinavia. (Less)
Please use this url to cite or link to this publication:
author
Jalrup, Lovisa LU
supervisor
organization
course
NEKH02 20191
year
type
M2 - Bachelor Degree
subject
keywords
Reputational Loss, Regulatory Sanctions, Abnormal Returns, Financial Market Reaction, Efficient Markets
language
English
id
8981448
date added to LUP
2019-08-08 11:31:33
date last changed
2019-08-08 11:31:33
@misc{8981448,
  abstract     = {{The purpose of this thesis is to determine if there is reputational harm as a consequence to
a regulatory sanction. The focus of the thesis is the Scandinavian countries after the global
financial crisis. To confirm if there is reputational losses associated with regulatory violations,
an event study of abnormal returns was employed. The regulator, as well as the company in
violation of regulation, has a need to understand the total financial loss following a regulatory
enforcement action. The total loss for a publicly listed entity is twofold, one part being the
administrative penalty given by the regulator, and the other being the penalty posed on the share
price by the market reacting to the bad news of a regulatory violation. In Scandinavia the legal
penalty constitutes of, on average, one eighth of the total financial loss which consequently
imply reputational losses following the affirmation of corporate wrongdoings in Scandinavia.}},
  author       = {{Jalrup, Lovisa}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Reputational Loss Associated with Regulatory Sanctions in Scandinavia}},
  year         = {{2019}},
}