Reputation on the Line: Eponymous Naming in Small Private Firms and Its Impact on Debt and Tax Decisions

This thesis examines whether firms that include the owner’s surname in the company name (“eponymous” firms) gain financial advantages. Using small private firms across several European countries (2008–2018), I find eponymous firms obtain lower loan interest rates, hold more long-term debt, and pay lower effective tax rates than comparable firms. Linking the owner’s identity to the business raises reputational stakes, discouraging risky behaviour, and signals reliability to lenders and tax authorities. Extensive tests confirm the results are not driven by selection. Naming choice is a simple, credible signal with measurable financial benefits.