Examining attribute-based reputation at the product and brand-level among automotive manufacturing firms in regulatory contexts

This research examines the relative impacts of product and brand reputation on government enforcement actions following reputation damaging events. Longitudinal analysis of 16 automobile manufacturers from 1967–2019 reveals distinct reputational effects at the product and brand levels. Specifically, following the identification of product defects, firms with higher brand reputation are more likely to face government punitive actions than those with lower brand reputations. At the product level, higher product level reputation is associated with a lower likelihood of government punitive actions than those with lower product level reputation. These results suggest that a firm’s reputation at various levels can send different performance signals to regulators and, therefore, will have implications on the nature and scope of regulatory enforcement.