Contemporaneous relationship between corporate reputation and return

Krueger, Thomas M.; Wrolstad, Mark; Dalsem, Shane Van

doi:10.1108/30743581080001336

Cited by 3 publications

(5 citation statements)

References 2 publications

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“…Most studies consider corporate reputation as a strategic asset, claiming that it leads to sustainable profitability, growth and competitive advantage. Such studies have, therefore, mostly focused on the effects of corporate reputation on financial performance (Rose and Thomsen 2004;Krueger, et al 2010).…”

Section: Concept Of Corporate Reputationmentioning

confidence: 99%

Corporate Reputation and Customer Satisfaction in the Telecommunication Industry in Nigeria

Ananaba¹,

Nwosu²,

Otika³

et al. 2021

African Journal of Social Sciences and Humanities Research

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Despite the widespread belief that corporate reputation is a valuable intangible asset that helps firms to compete favourably in the telecommunication industry, the scientific evidence is deficient on how corporate reputation influence customer satisfaction in the study area. The study focused on the relationship between corporate reputation and customer satisfaction. The survey research design method was employed in the study. The research instrument was a validated structured questionnaire. The reliability of the questionnaire was estimated by assessing the internal consistency of the items representing each construct. Cronbach’s alpha was used to establish the reliability of the constructs. The correlation and multiple regression analyses were used in the study. The sample size of 135 respondents was administered with the questionnaire. The finding of the analyses revealed that trustworthiness (B = 0.251, P<.001); corporate social responsibility (B = 0.283, P<.001); credibility (B = 0.198, P<.001) and reliability (B = 0.219, P<.001) were respectively significant and exhibited significant positive effects on customer satisfaction. The major conclusion that emerged from the findings is that corporate reputation is a multifaceted construct whose dimensions have significant positive relationships with marketing performance outcome of customer satisfaction in the mobile telecommunications services industry. In the competitive context, managers should apply the dimensions of corporate reputation that is appropriate for their target segment and develop their customer satisfaction strategy.

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Section: Concept Of Corporate Reputationmentioning

confidence: 99%

Corporate Reputation and Customer Satisfaction in the Telecommunication Industry in Nigeria

Ananaba¹,

Nwosu²,

Otika³

et al. 2021

African Journal of Social Sciences and Humanities Research

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“…Lee and Roh (2012) proposed a positive relationship between overall corporate reputation and firm performance across high-tech and low-tech industries and found that corporate reputation has a positive effect on most indices of corporate performance, regardless of types of performance measures and industry contexts. Krueger et al (2010) examined stock market performance contemporaneous with changes in corporate reputation and provide evidence that firms with improved reputations enjoy lower volatility in their stock prices than firms with diminished reputations. Podolny (1993) stresses that the variety of potential benefits of which accrue to a firm as a result of good reputation point to the significant correlation between corporate reputation and firm financial performance.…”

Section: Corporate Reputation and Overall Performancementioning

confidence: 99%

Corporate social responsibility and reputation: some empirical perspectives

Famiyeh

Kwarteng

Dadzie

2016

JGR

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Purpose The purpose of this paper is to examine the impact of corporate social responsibility (CSR) and firm’s reputation in terms of product and service quality, management performance and attractiveness as well as reputation on overall performance from a developing country’s environment. Design/methodology/approach The partial lest squares structural equation modeling was used to study the relationship between CSR and firm’s reputation as well as the overall organizational performance using a survey of informants from Ghana. Findings Using data from firms in Ghana, the study demonstrates that CSR initiative by firms will have a positive relationship with firm’s reputation in terms of product and service quality, management performance and attractiveness as well as overall performance. Furthermore, the study demonstrates that enhanced reputation by firms through social responsibility initiatives will lead to firms’ overall performance from the Ghanaian business environment. Research limitations/implications The main limitation of this work is the source of the data originating from only executives from Ghana where managers are sometimes skeptical giving out such information; this might have some influence on the results. In addition, there could be potential endogeneity and unobserved heterogeneity issues. It is therefore recommended that future studies should consider these issues to check as to whether the same results could be achieved. Specifically, results indicate that when organizations invest in CSR initiatives, they are likely to achieve product quality, improved management performance and an attractiveness as well as overall performance. Practical implications The research shows how CSR initiatives can enhance firm’s reputation and overall performance of a firm. Originality/value The work illustrates and provides some insights and builds on the literature in the area CSR and reputation from a developing country’s environment.

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“…They find firm reputations are procyclical and that firms with improving reputations have less volatile stock prices than firms with declining reputations during their sample period 1999–2007. Although limited by timing issues generated by the RQ methodology, Kruger et al (2010) also suggest that good stock returns cause good reputation rather than good reputation causing good stock returns as present in much previous research. They do not, however, test this causality.…”

Section: Introductionmentioning

confidence: 82%

“…Our sample period is, therefore, April 1, 2015 to July 1, 2020. Although a longer sample period would be preferred, thus extending the studies by Krueger et al (2010; for the period 2000 to 2007) and Krueger and Wrolstad (2016;from 2000to 2014, Nielson Holdings purchased Harris Interactive in 2014 and made changes to the ratings, including expanding the list from 60 to 100 firms. The Stagwell Group purchased the Harris RQ in 2017 but did not make material changes to the methodology.…”

Section: Data 21 Harris Reputation Quotient Rankingmentioning

confidence: 99%

“…They do find significantly lower risk in their portfolio of highest RQ ranked firms. Krueger et al (2010), in examining investment performance associated with changes in corporate reputation measured by RQ, include risk-adjusted performance measures such as standard deviation, beta, Sharpe, Treynor and Jensen's alpha. They find firm reputations are procyclical and that firms with improving reputations have less volatile stock prices than firms with declining reputations during their sample period 1999–2007.…”

Section: Introductionmentioning

confidence: 99%

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Investment returns from reputation investing: do good firms provide good returns?

Beck

Chong

Niendorf

2021

AJB

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PurposeThis study aims to examine whether a good corporate reputation leads to superior investment returns. Theory and empirics provide support for the idea that a good corporate reputation improves firm value, but much of the previous research fails to consider the risk of the companies they study and relies only on accounting measures of performance such as return on assets. A complete picture of the relationship between corporate reputation and shareholder value should include risk-adjusted returns and correlation with benchmark returns.Design/methodology/approachThe Harris Poll Reputation Quotient (RQ), based on the reputations of the 100 most visible companies, suggests that companies with a “solid reputation” are more likely to be attractive investments. The authors construct portfolios using deciles and the RQ categories, rebalancing annually as RQ rankings are updated. Returns are adjusted for risk using Jensen's alpha, the information ratio, the Sharpe ratio, Modigliani and Modigliani's M2 measure, and Muralidhar's M3 measure.FindingsThe results indicate that choosing a portfolio based on the highest RQ-ranked firms does outperform the market on a risk-adjusted basis, and that the relationship between rankings and time-weighted returns is roughly monotonic. The authors also observe that corporate reputation is persistent, and that the best and worst most-visible firms are more likely to be privately held.Originality/valueThis research adds to the literature by including both market-based return measures and risk in the examination of the relationship between corporate reputation and financial performance.

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Contemporaneous relationship between corporate reputation and return

Cited by 3 publications

References 2 publications

Corporate Reputation and Customer Satisfaction in the Telecommunication Industry in Nigeria

Corporate Reputation and Customer Satisfaction in the Telecommunication Industry in Nigeria

Corporate social responsibility and reputation: some empirical perspectives

Investment returns from reputation investing: do good firms provide good returns?

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