How do stockholders behave at the onset of major crises ? Attribution and reputation over decades

Studies have documented a reputational loss for firms found guilty of rule violations. To determine if stockholders also punished US listed firms following 274 major crises, we create three groups of events based on attribution of responsibility. The average wealth loss and the proportion of negative reactions following crises largely depend on the attribution level. The negative reaction is reversed for non-attributed crises but persists for attributed crises. These results are consistent with the attribution theory proposition that only attributed crises cause reputational damage. Further, this reputational loss has been stable for six decades.