The Impact of Corporate Reputation on Performance : some danish evidence
By: ROSE, Caspar; THOMSEN, Steen
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ArticlePublisher: Oxford : Elsevier, April 2004European Management Journal 22, 2, p. 201-210Abstract: We investigate the relatinship between a firm's reputation anf financial performance. Our results challenge the conventional wisdom since we find that corporate reputation does not impact firm value (the market to book value of equity) whereas corporate financial performance improvees corporate reputation. The policy implication of the findings is that the relation between reputation and performance is not as straighforward as argued in the literature. We do not question that reputation is vital for the survival of the firm in the long run, but argue that it may influence stock market than having a direct impact on the stock markets. If management is concerned with enhancing shareholder value, it should be concerned with the business impact of corporate reputation. Moreover, if management is concerned with the firm's image, maximizing shareholders value is not a bad start
We investigate the relatinship between a firm's reputation anf financial performance. Our results challenge the conventional wisdom since we find that corporate reputation does not impact firm value (the market to book value of equity) whereas corporate financial performance improvees corporate reputation. The policy implication of the findings is that the relation between reputation and performance is not as straighforward as argued in the literature. We do not question that reputation is vital for the survival of the firm in the long run, but argue that it may influence stock market than having a direct impact on the stock markets. If management is concerned with enhancing shareholder value, it should be concerned with the business impact of corporate reputation. Moreover, if management is concerned with the firm's image, maximizing shareholders value is not a bad start
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