Next Alliance Webinar-Online reputation

Join the next Alliance for Research on Wine & Hospitality Management Webinar on February 25th 2021, 2:30 pm – 3:30 pm (CET)



Jean-Philippe Weisskopf (Ecole Hôtelière de Lausanne)


Online Reputation and Debt Capacity


Teams: Nous rejoindre sur votre ordinateur ou votre appareil mobile 

Click on the following link to join the meeting


February 25th 2021, 2:30 pm – 3:30 pm (CET)


Olivier Gergaud

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 have more impact on debt capacity when information asymmetry is higher.

They affect financial policy through a reduction in cash flow risk and greater resilience to demand shocks. Restaurants with good ratings use their extra debt capacity to invest in tangible assets.

Keywords : online reputation; customer ratings; corporate debt; corporate investment.

Link to paper :