• ISSN: 2010-023X (Print)
    • Abbreviated Title: Int. J. Trade, Economics and Financ.
    • Frequency: Quaterly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Managing Editor: Ms. Shira. W. Lu
    • Abstracting/ Indexing:  Crossref, Electronic Journals Library , EBSCO
    • E-mail: ijtef.editorial.office@gmail.com
HOME > Archive > 2020 > Volume 11 Number 6 (Dec. 2020) >
IJTEF 2020 Vol.11(6): 128-134 ISSN: 2010-023X
DOI: 10.18178/ijtef.2020.11.6.678

The Effect of Financial Regulation on Reputation

Peter Mitic

Abstract—Recent high profile breaches of regulation by prominent UK financial institutions suggest that self-regulation is ineffective. Intuitively, regulatory breaches should result in a tarnished reputation, but that conjecture is unsubstantiated. With objective measurement of reputation, we demonstrate that reputational damage is not a significant deterrent against regulatory breaches. Imposing regulatory fines is also no deterrent. We speculate that customers are prepared to tolerate large regulatory breaches: retail customers provided they are not affected personally, and corporate customers as long as investments do not devalue. Regulation has not previously been linked to reputation, and this result is significant because it adds to the argument that external regulation remains necessary. Note is also made of recent unsuccessful initiatives on self-regulation.

Index Terms—Reputation, reputation index, regulation, regulatory breaches, correlation.

P. Mitic is with the Dept. of Computer Science, University College London, Gower Street, London WC1E 6BT, UK (e-mail: p.mitic@ucl.ac.uk).

[PDF]

Cite: Peter Mitic, "The Effect of Financial Regulation on Reputation," International Journal of Trade, Economics and Finance vol.11, no.6, pp. 128-134, 2020.

Copyright © 2020 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

PREVIOUS PAPER
First page
NEXT PAPER
Forecasting the United States Unemployment Rate by Using Recurrent Neural Networks with Google Trends Data

Copyright © 2008-2024. International Journal of Trade, Economics and Finance. All rights reserved.
E-mail: ijtef.editorial.office@gmail.com