Stakeholder Perception of Financial Performance in Corporate Reputation Formation
Diversity of corporate reputation understanding concepts complicates its comprehensive reflection in financial statements. This paper presents the study results on the influence of stakeholder perception of financial performance on corporate reputation. The goal of this article is to identify the signs of maximizing the value of corporate reputation by analyzing public companies' financial performance. We have determined that company's commercial success and its business model prospects becomes the evidence of the corporate reputation's financial component, which is formed simultaneously under the influence of the stakeholder perception. The analysis results lead us to the conclusion that the corporate reputation's financial component is more sensitive to investors' perception rather than to consumers' perception. This is because analysis of financial statements is an important stage in making investment decisions. Instead, consumer commitment is formed by mostly non-financial factors. In our conclusions, we suggest modernizing the existing accounting approaches to intangible assets that will strengthen the image and corporate reputation, increase company's market capitalization and improve its investment attractiveness.(original abstract)
- Agarwal, J., Osiyevskyy, O. & Feldman, P. M. (2015). Corporate reputation measurement: Alternative factor structures, nomological validity, and organizational outcomes. Journal of Business Ethics, 130(2), 485-506. doi: https://dx.doi.org/10.1007/s10551-014-2232-6
- Ali, R., Lynch, R., Melewar, T. C. & Jin, Z. (2015). The moderating influences on the relationship of corporate reputation with its antecedents and consequences: A meta-analytic review. Journal of Business Research, 68(5), 1105-1117. doi: https://dx.doi.org/10.1016/j.jbusres.2014.10.013
- Arikan, E., Kantur, D., Maden, C. & Telci, E. E. (2016). Investigating the mediating role of corporate reputation on the relationship between corporate social responsibility and multiple stakeholder outcomes. Quality & Quantity, 50(1), 129-149. doi: https://dx.doi.org/10.1007/s11135-014-0141-5
- Barnett, M. L., Jermier, J. M. & Lafferty, B. A. (2006). Corporate reputation: The definitional landscape. Corporate reputation review, 9(1), 26-38. doi: https://dx.doi.org/10.1057/palgrave.crr.1550012
- Bilan, Y. (2013). Sustainable development of a company: Building of new level relationship with the consumers of XXI century. Amfiteatru Economic, 15(7), 687-701.
- Black, E. L., Carnes, T. A. & Richardson, V. J. (2000). The market valuation of corporate reputation. Corporate Reputation Review, 3(1), 31-42. doi: https://dx.doi.org/10.1057/palgrave.crr.1540097
- Blajer-Golebiewska, A., & Kos, M. (2016). Investors are more sensitive to information about financial rather than ethical reputation of a company: evidence from an experimental study. Economics & Sociology, 9(1), 11, 11-22. doi: https://dx.doi.org/10.14254/2071-789X.2016/9-1/1
- Chun, R. (2005). Corporate reputation: Meaning and measurement. International Journal of Management Reviews, 7(2), 91-109. doi: https://dx.doi.org/10.1111/j.1468-2370.2005.00109
- Cornelissen, J. P., Haslam, S. A. & Balmer, J. M. (2007). Social identity, organizational identity and corporate identity: Towards an integrated understanding of processes, patternings and products. British Journal of Management, 18, 1-16. doi: https://dx.doi.org/10.1111/j.1467-8551.2007.00522.x
- Clardy, A. (2012). Organizational reputation: Issues in conceptualization and measurement. Corporate Reputation Review, 15(4), 285-303. doi: https://dx.doi.org/10.1057/crr.2012.17
- Damodaran, A. (2017). Investment valuation: Tools and techniques for determining the value of any asset. Moscow: Alpina Publisher. (in Russian).
- Dowling, G. (2006). How good corporate reputations create corporate value. Corporate Reputation Review, 9(2), 134-143. doi: https://dx.doi.org/10.1057/palgrave.crr.1550017
- Dowling, G. (2016). Defining and measuring corporate social reputations. Annals in Social Responsibility, 2(1), 18-28. doi: https://dx.doi.org/10.1108/ASR-08-2016-0008
- Edvinsson, L. & Malone, M.S. (1997). Intellectual capital: realizing your company's true value by finding its hidden brainpower. HarperCollins Publishers, Inc., New York.
- Feldman, P. M., Bahamonde, R. A. & Velasquez Bellido, I. (2014). A new approach for measuring corporate reputation. Revista de Administração de Empresas, 54(1), 53-66. doi: http://doi.org/10.1590/S0034-759020140102
- Fombrun, C. J. (2007). List of lists: A compilation of international corporate reputation ratings. Corporate Reputation Review, 10(2), 144-153. doi: https://dx.doi.org/10.1057/palgrave.crr.1550047
- Fombrun, C.J., Ponzi, L.J. & Newburry W. (2015). Stakeholder tracking and analysis: the RepTrak® system for measuring corporate reputation. Corporate Reputation Review, 18, 3-24. doi: https://dx.doi.org/10.1057/palgrave.crr.2014.21
- Foroudi, P., Melewar, T. C. & Gupta, S. (2014). Linking corporate logo, corporate image, and reputation: An examination of consumer perceptions in the financial setting. Journal of Business Research, 67 (11), 2269-2281. doi: https://dx.doi.org/10.1016/j.jbusres.2014.06.015
- Jakab, P., & Happ, É. (2017), Impact Assessment between the City and the Company Reputation. Economics & Sociology, 10(1), 279-289.
- Ivanov, A. E., Sokolova, N. A., Generalova, N. V. et al. (2017). Goodwill: Synergistic essence, evaluation, accounting, analysis. Moscow: RIOR, INFRA-M. doi: http://doi.org/10.12737/6031 (in Russian).
- Lange, D., Lee, P. M. & Dai, Y. (2011). Organizational reputation: A review. Journal of Management, 37(1), 153-184. doi: https://dx.doi.org/10.1177/0149206310390963
- Melo, T. & Garrido Morgado, A. (2012). Corporate reputation: A combination of social responsibility and industry. Corporate Social Responsibility and Environmental Management, 19(1), 11-31. doi: http://doi.org/10.1002/csr.260
- Olmedo-Cifuentes, I., Martínez-Leon, I. M. & Davies, G. (2014). Managing internal stakeholders' views of corporate reputation. Service Business, 8(1), 83-111. doi: https://dx.doi.org/10.1007/s11628-013-0188-8
- Paulík, J., Kombo, F., & Ključnikov, A. (2015). CSR as a driver of satisfaction and loyalty in commercial banks in the Czech Republic. Journal of International Studies, 8(3), 112-127.
- Pritchard, M. & Wilson, T. (2017). Building corporate reputation through consumer responses to green new products. Journal of Brand Management, 1-15. doi: https://dx.doi.org/10.1057/s41262-017-0071-3
- Sabate, J. M. & Puente, E. (2003). Empirical analysis of the relationship between corporate reputation and financial performance: A survey of the literature. Corporate Reputation Review, 6(2), 161-177. doi: https://dx.doi.org/10.1057/palgrave.crr.1540197
- Sarstedt, M., Wilczynski, P. & Melewar, T. C. (2013). Measuring reputation in global markets - A comparison of reputation measures' convergent and criterion validities. Journal of World Business, 48(3), 329-339. doi: https://dx.doi.org/10.1016/j.jwb.2012.07.017
- Tischer, S. & Hildebrandt, L. (2014). Linking corporate reputation and shareholder value using the publication of reputation rankings. Journal of Business Research, 67(5), 1007-1017. doi: https://dx.doi.org/10.1016/j.jbusres.2013.08.007
- Walker, K. (2010). A systematic review of the corporate reputation literature: Definition, measurement, and theory. Corporate reputation review, 12(4), 357-387. doi: https://dx.doi.org/10.1057/crr.2009.26