Author:

Keywords:

Corporate reputation, Media reputation, trade credit use, credit risk, information asymmetry, Social Sciences, Business, Management, Business & Economics, Trade credit use, Information asymmetry, Credit risk, TRADE CREDIT, EMPIRICAL-EXAMINATION, SAMPLE SELECTION, DETERMINANTS, RISK, CONSTRUCTION, LEGITIMATION, INFORMATION, COVERAGE, FINANCE, 0806 Information Systems, 1503 Business and Management, 1505 Marketing, Business & Management, 35 Commerce, management, tourism and services

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.