Premium
The effects of corporate reputation perceptions of the general public on shareholder value
Author(s) -
Raithel Sascha,
Schwaiger Manfred
Publication year - 2015
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.2248
Subject(s) - reputation , conceptualization , shareholder value , perception , business , value (mathematics) , shareholder , stakeholder , marketing , accounting , corporate governance , public relations , economics , finance , management , psychology , political science , law , artificial intelligence , neuroscience , machine learning , computer science
Superior corporate reputations can have strategic value for firms. Of the “multiple reputations” associated with each firm, we focus on the perceptions of the general public. The public represents the most widely defined stakeholder group but has attracted the least amount of research interest to date. Drawing on data for G erman firms, this study demonstrates that superior reputation perceptions issued by the general public increase shareholder value, as measured by future stock returns. This study provides a more nuanced understanding for this novel finding. Applying a conceptualization of reputation that balances both its affective and cognitive components, we find that reputation perceptions that are driven by nonfinancial aspects are more value relevant in the future than reputation perceptions that are driven by previous financial performance . Copyright © 2014 John Wiley & Sons, Ltd.