For a legal proceeding, Swiss Economics assisted a client in the preparation of an expert economic report assessing damages arising from reputational harm. The report included a theoretical review of the economic importance of corporate reputation and the relative impact of positive and negative information, a quantification of damages resulting from lost business opportunities using a comparables-based approach, and an estimation of the costs required to restore the damaged reputation based on an analysis of article publication costs and the balancing of positive and negative information.

Methodology

• Assessment of the economic significance of corporate reputation and its role as an intangible asset influencing commercial performance and firm value.
• Review of the relevant academic and economic literature on reputation, including the relative impact of positive and negative information on stakeholder perceptions and business outcomes.
• Development of a framework for quantifying damages resulting from lost business opportunities based on a comparables approach, including the identification of suitable benchmark companies and transactions.
• Analysis of the measures required to restore the damaged reputation, including an assessment of the volume and type of positive information needed to offset adverse publicity.
• Evaluation of article publication costs and estimation of the expenditure required to rebalance positive and negative information and restore the company's reputation.
• Integration of the theoretical analysis, empirical evidence, and damages assessment to provide an overall economic evaluation of reputational harm.
• Preparation of an expert report summarising the methodology, findings, and economic conclusions for use in legal proceedings.