Celebrating Success: Professor Simon Hussain & Dr Chen Su

Congratulations to Professor Simon Hussain & Dr Chen Su, whose paper “The Impact of Analyst, CEO and Firm Reputations on Investors in the UK and Japanese Stock Markets” has been accepted by the British Journal of Management.

Abstract: Studies of reputation within the management literature employ differing conceptions of corporate reputation and a range of different stakeholders. Studies of reputation conducted within economics often model reputation as a direct function of an agent’s past behaviour. There have been calls for work incorporating economic models into management studies of reputation. Our paper follows that call. We examine the importance of multiple agents’ reputations on the market’s reaction to analysts’ stock recommendation revisions (analyst revisions), individually and interactively, in the UK and Japanese stock markets. Notable variations in reputation effects emerge within these two markets. In the UK, analyst reputation amplifies the market’s reaction to analyst revisions, while analyst reputation has no significant impact in Japan. Firm reputation diminishes (amplifies) the market’s reaction to analyst revisions in the UK (Japan). Only CEO reputation generates similar effects in the UK and Japan, dampening the market’s reaction to analyst revisions. We also find that reputations interact in different ways in the two markets.