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10 juillet 2020
- handle: 10670/1.bu7ys9
- hal: hal-02896691
- doi: 10.2139/ssrn.3538313
Ce document est lié à :
info:eu-repo/semantics/altIdentifier/doi/10.2139/ssrn.3538313
Mots-clés
online reputation customer ratings corporate debt corporate investment G - Financial Economics/G.G1 - General Financial Markets/G.G1.G14 - Information and Market Efficiency • Event Studies • Insider Trading G - Financial Economics/G.G3 - Corporate Finance and Governance/G.G3.G32 - Financing Policy • Financial Risk and Risk Management • Capital and Ownership Structure • Value of Firms • Goodwill L - Industrial Organization/L.L1 - Market Structure, Firm Strategy, and Market Performance/L.L1.L15 - Information and Product Quality • Standardization and Compatibility L - Industrial Organization/L.L8 - Industry Studies: Services/L.L8.L83 - Sports • Gambling • Restaurants • Recreation • TourismSujets proches
Restaurants, lunch rooms, etc Cafés Dining establishments IndebtednessCiter ce document
François Derrien et al., « Online Reputation and Debt Capacity », HAL-SHS : droit et gestion, ID : 10.2139/ssrn.3538313
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Résumé
This paper explores the effects of online customer ratings on debt capacity. Using a large sample of Parisian restaurants, we find a positive and economically significant relation between customer ratings and bank debt. We use the locally exogenous variation in customer ratings resulting from the rounding of scores in regression discontinuity tests to establish causality. Customer ratings affect financial policy through a reduction in cash flow risk and higher resilience to demand shocks. Restaurants with good ratings use their extra debt capacity to invest in tangible assets. Finally, favorable online ratings relax credit constraints mostly for moderately constrained restaurants.