Under pressure: Reputation, ratings, and inaccurate self‐reporting in the nursing home industry

Research Summary This paper examines firms' strategic responses to reputational pressures in a critical healthcare domain—the U.S. nursing home industry. We investigate whether organizations improved in terms of care quality following an exogenous change in the required number of nursing hours associated with star‐based ratings to which nursing homes are subject. We show that although firms at risk of losing a star tended to self‐report higher...