Part IV: How Do Reputations Affect Corporate Performance?: Has the Influence of Financial Performance on Reputation Meas
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Part IV: How Do Reputations Affect Corporate Performance? A question invariably recurs in discussions about corporate reputation: are they cause, consequence, or epiphenomenon? That is: do they have an independent causal eect on corporate performance; are they a consequence of good ®nancial performance? Or are they an incidental by-product? The second day of the conference began with a review of available evidence of the possible ®nancial impact of corporate reputations. The following panelists discussed their prepared papers: The Value of Corporate Reputation: Evidence from the Equity Markets Rajendra K. Srivastava, University of Texas at Austin Thomas H. McInish, Memphis State University Robert A. Wood, Memphis State University Anthony J. Capraro, University of Texas at Austin The Eect of Financial and Media Reputations on Performance David L. Deephouse, Louisiana State University The Value of a Firm's Corporate Reputation: How Reputation Helps Attain and Sustain Superior Pro®tability Peter W. Roberts, University of New South Wales Grahame R. Dowling, University of New South Wales Stock Market Valuation of Reputation for Corporate Social Performance Brad Brown, University of Virginia Sustainable Competitive Advantage and Firm Performance: The Role of Intangible Resources G. Steven McMillan, The American College Maheshkumar P. Joshi, St. Joseph's University Has the In¯uence of Financial Performance on Reputation Measures Been Overstated? A. J. Capraro, University of Texas at Austin Rajendra K. Srivastava, University of Texas at Austin
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How do reputations aect corporate performance?
The Value of Corporate Reputation: Evidence from the Equity Markets Rajendra K. Srivastava, Jack R. Crosby Regents Chair in Business, The University of Texas at Austin Thomas H. McInish, Professor and Wunderlich Chair of Finance, The University of Memphis Robert A. Wood, Distinguished Professor of Finance, The University of Memphis Anthony J. Capraro, The University of Texas at Austin
INTRODUCTION It has long been recognized that intangible assets represent a signi®cant portion of company value. Recently, interest has begun to focus on managing this value base. Although discussions of intangible assets typically center on intellectual property (patents, trademarks, etc) or brand (value of brand extensions, customer loyalty, etc), Hall (1993) points out that corporate reputation may also function as an intangible asset for the ®rm, providing a sustainable positional advantage for ®rms who enjoy a strong and positive reputation. The business community has shown that it considers corporate reputation a valuable asset. Hall (1992) reports company reputation as the intangible resource most commonly identi®ed by chief executives. Banks have lent substantial amounts of money using the `good name' of a ®rm as collateral (Ohame, 1989). Brand valuation specialists' references to `the customer franchise of brands like St. Michael and IBM' (Barwise et al., 1989, p. 25) are a clear reference to value associat
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