Measuring the Immeasurable Corporate Reputation

Abstract

Research on any topic seems incomplete till the time a standardized measure for it is not evolved. Measuring intangible assets seems to be a challenging core for the financial academia. More specifically, assigning value to company’s reputation is subjective which confound researchers around the globe. Despite prolific research into this issue, its measurement still baffles the scholars, practitioners, and managers. Although large number of survey methods (like Fortune Most Admired Companies [FMAC] list) have been used extensively, but certain serious limitations of these methods, finally paved way for quantitative tools to measure corporate reputation. An endeavour has been made through current study to compile the efforts of various researchers, who developed proxies for measuring corporate reputation. Reputation of 500 Indian companies constituting BSE 500 index has been measured using six proxies, and Spearman correlation is computed among these proxies. It is interesting to observe that Indian companies are able to maintain their reputation over the years. The findings of the study clearly reveal that reputation research still lacks a concrete measurement. It is high time for the accounting standard setters to devise a framework for measuring and reporting corporate reputation as it has been widely acclaimed as an indispensable asset.

Ceo Characteristics, Firm Reputation and Firm Performance After Merger and Acquisition

“…This method of data retrieval will be suitable if it is used in companies established in first countries where reputation has been built from the beginning of the company. Measurement of data like this will lead to bias for companies that stand in developing countries (Kaur & Singh, 2018).…”

“…Firm reputation is a company resource that is difficult to measure because it is an intangible resource, researchers continues to look for the most suitable and generalizable measurement for all companies in measuring firm reputation. In the research of Kaur and Singh (2018) test to find the best benchmarks for measuring firm reputation. The results obtained are price earning ratio turn out to be a relevant measurement for measuring firm reputation.…”

“…The results obtained are price earning ratio turn out to be a relevant measurement for measuring firm reputation. Price earning ratio is a result of perception accompanied by reality which can also be called firm reputation on investors' perceptions (Kaur & Singh, 2018).…”

The Effect of Acquisition Synergy on Firm Perfomance moderated by Firm Reputation

“…Firm reputation is a company resource that is difficult to measure because it is an intangible reputation is an asset that can be utilized in all conditions, and therefore reputation is very helpful for the company (Barney, 1991;Kaur & Singh, 2018;Raithel & Schwaiger, 2015).…”

“…In general, the price earning ratio indicates how eager investors are to pay in order to get every profit generated by the company. A high price earning ratio is a healthy indicator of corporate finance that also gives an indication that investors have high expectations for the company's future (Kaur & Singh, 2018).…”