Does Brand Management of Corporate Reputation Translate into Higher Market Value?
Journal of Strategic Marketing, Vol. 18, No. 3, pp. 201-221, 2010
38 Pages Posted: 21 May 2008 Last revised: 3 Apr 2014
Date Written: November 5, 2010
Brand associations affect image and one source of brand association is a company’s reputation. While the relationship between a positive corporate reputation and operational performance is intuitively appealing, there has been relatively little empirical research. This study, using a comprehensive approach, seeks to empirically test the relationship and thereby determine whether firms with a positive brand image, that is those with a positive reputation, experience an economic benefit. Findings are that these firms are associated with a significant market value premium, superior financial performance, and lower cost of capital. Given these findings, marketing managers would do well to strive to build and maintain a positive reputation.
Keywords: Corporate Reputation, Financial Markets, Corporate Social Responsibility, Ethics
JEL Classification: M41, M14, G34, L14
Suggested Citation: Suggested Citation