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Are high-quality firms also high-quality investments?

Author

Listed:
  • Peter Antunovich
  • David S. Laster
  • Scott Mitnick

Abstract

The relationship between corporate reputation and investment results is the subject of ongoing debate. Some argue that high-quality firms ultimately provide superior stock price performance; others counter that stock prices already reflect these firms' prospects for growth and profitability. This study advances the debate by providing fresh evidence that investing in high-quality firms yields above-average returns and that these superior returns continue for up to five years.

Suggested Citation

  • Peter Antunovich & David S. Laster & Scott Mitnick, 2000. "Are high-quality firms also high-quality investments?," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 6(Jan).
    • Handle: RePEc:fip:fednci:y:2000:i:jan:n:v.6no.1
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    References listed on IDEAS

    as
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    7. Peter Antunovich & David S. Laster, 1999. "Do investors mistake a good company for a good investment?," Staff Reports 60, Federal Reserve Bank of New York.
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    Citations

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    Cited by:

    1. Brammer, Stephen & Brooks, Chris & Pavelin, Stephen, 2009. "The stock performance of America's 100 Best Corporate Citizens," The Quarterly Review of Economics and Finance, Elsevier, vol. 49(3), pages 1065-1080, August.
    2. Junttila, Juha & Kallunki, Juha-Pekka & Karja, Aki & Martikainen, Minna, 2005. "Stock market response to analysts' perceptions and earnings in a technology-intensive environment," International Review of Financial Analysis, Elsevier, vol. 14(1), pages 77-92.
    3. Ming-Chuan Chen & Chen-Fu Lee & Chien-Ming Huang, 2016. "The Effects of Corporate Social Responsibility on Equity Fund Returns: Evidence from China," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(10), pages 92-102, October.
    4. Angela Poulakidas & Paul A. Dion, 2016. "The Influence of Corporate Reputation on Preference for Biodiesel Supplier," Corporate Reputation Review, Palgrave Macmillan, vol. 19(4), pages 331-344, November.
    5. Muammer Sarıkaya; & Sinan Yılmaz; & Fatih Temizel, 2012. "The need and corporate reputation in publicly traded sports corporations: examination of Beşiktaş Sports Inc," International Journal of Economics and Accounting, Inderscience Enterprises Ltd, vol. 3(1), pages 4-31.
    6. Chung-Hua Shen & Yuan Chang, 2009. "Ambition Versus Conscience, Does Corporate Social Responsibility Pay off? The Application of Matching Methods," Journal of Business Ethics, Springer, vol. 88(1), pages 133-153, April.
    7. Greg Filbeck & Raymond Gorman & Xin Zhao, 2013. "Barron’s most respected companies," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 53(3), pages 623-641, September.

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