Corporate reputation and the future cost of equity
| Autor: | Manfred Schwaiger, Tobias Morath, Benjamin Pfister |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
M14
Information asymmetry Public economics Corporate reputation media_common.quotation_subject Cost of equity Corporate risk Competitive advantage Corporate finance Reputational damages D83 ddc:650 Damages Business Management and Accounting (miscellaneous) G32 Business Empirical evidence Set (psychology) Intangible assets Reputation media_common |
| Zdroj: | Business Research. 13:343-384 |
| ISSN: | 2198-2627 2198-3402 |
| DOI: | 10.1007/s40685-019-0092-8 |
| Popis: | Corporate reputation is an important management objective, bearing the potential to create sustainable competitive advantage, and many scholars have studied its impact on firm performance. However, its effect on the cost of equity has only recently begun to attract the attention of academic research. Empirical evidence is scarce, and the results are inconclusive. Applying a validated measure of reputation, we scrutinize its impact for a set of German blue-chip companies between 2005 and 2011. We show that higher levels of reputation are associated with a lower future cost of equity. While reputation improvements are not followed by a measurable short-term effect, reputational damages lead to a significant increase in the future cost of equity within 6 months. We interpret our findings against the backdrop of the previous studies, offering several explanations for diverging results. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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