Artikel
Corporate reputation and the future cost of equity
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.
- Language
-
Englisch
- Bibliographic citation
-
Journal: Business Research ; ISSN: 2198-2627 ; Volume: 13 ; Year: 2020 ; Issue: 1 ; Pages: 343-384 ; Heidelberg: Springer
- Classification
-
Management
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
Corporate Culture; Diversity; Social Responsibility
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
- Subject
-
Corporate reputation
Corporate risk
Cost of equity
Information asymmetry
Reputational damages
Intangible assets
- Event
-
Geistige Schöpfung
- (who)
-
Pfister, Benjamin
Schwaiger, Manfred
Morath, Tobias
- Event
-
Veröffentlichung
- (who)
-
Springer
- (where)
-
Heidelberg
- (when)
-
2020
- DOI
-
doi:10.1007/s40685-019-0092-8
- Handle
- Last update
-
10.03.2025, 11:46 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Pfister, Benjamin
- Schwaiger, Manfred
- Morath, Tobias
- Springer
Time of origin
- 2020
Other Objects (12)
Corporate reputation and the cost of capital
Managing corporate reputation
Corporate Reputation Management durch corporate communications
Corporate social responsibility disclosure and its relationship to corporate identity, reputation and the cost of capital
Whistleblowing und Corporate Reputation Management
Corporate reputation and firm value
Risk aversion, managerial reputation, and debt-equity conflict
Corporate reputation - why does it matter? : how communication experts handle corporate reputation management in Europe
The corporate equity puzzle
Corporate Reputation, Employees, and Social Media
Linking corporate reputation and shareholder value using the publication of reputation rankings
Linking corporate reputation and shareholder value using the publication of reputation rankings
Corporate reputation and the cost of capital
Managing corporate reputation
Corporate Reputation Management durch corporate communications
Corporate social responsibility disclosure and its relationship to corporate identity, reputation and the cost of capital
Whistleblowing und Corporate Reputation Management
Corporate reputation and firm value
Risk aversion, managerial reputation, and debt-equity conflict
Corporate reputation - why does it matter? : how communication experts handle corporate reputation management in Europe
The corporate equity puzzle
Corporate Reputation, Employees, and Social Media
Linking corporate reputation and shareholder value using the publication of reputation rankings
Linking corporate reputation and shareholder value using the publication of reputation rankings
Corporate reputation and the cost of capital
Managing corporate reputation
Corporate Reputation Management durch corporate communications
Corporate social responsibility disclosure and its relationship to corporate identity, reputation and the cost of capital
Whistleblowing und Corporate Reputation Management
Corporate reputation and firm value
Risk aversion, managerial reputation, and debt-equity conflict
Corporate reputation - why does it matter? : how communication experts handle corporate reputation management in Europe
The corporate equity puzzle
Corporate Reputation, Employees, and Social Media
Linking corporate reputation and shareholder value using the publication of reputation rankings