IDEAS home Printed from https://ideas.repec.org/a/ibf/ijbfre/v10y2016i2p1-16.html
   My bibliography  Save this article

Reputation, Financial Performance, And Industry Competition

Author

Listed:
  • Yilun Shi

Abstract

In this study, we re-examine the relationship between reputation and financial performance in a unique setting, namely industry intensity. Using a sample of Most Admired Companies by Fortune magazine from 2006–2008, we show that industry competition partially changes the dynamic between financial performance and corporate reputation. While more reputable firms generate better operating outcomes regardless of industry competition, the effect of prior financial performance on subsequent reputation is moderated as competition intensifies. Specifically, in non-competitive sectors, financial outcome is still a dominating factor in evaluating future corporate reputation. The influence, however, is diluted in competitive sectors as information asymmetry is eased. Our empirical findings advance the understanding of the relationship between reputation and performance as well as its interaction with other institutional features.

Suggested Citation

  • Yilun Shi, 2016. "Reputation, Financial Performance, And Industry Competition," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 10(2), pages 1-16.
  • Handle: RePEc:ibf:ijbfre:v:10:y:2016:i:2:p:1-16
    as

    Download full text from publisher

    File URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v10n2-2016/IJBFR-V10N2-2016-1.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Henry Gunawan & Khomsiyah Khomsiyah, 2022. "Culture and bank reputation," Technium Social Sciences Journal, Technium Science, vol. 37(1), pages 350-358, November.
    2. repec:thr:techub:10037:y:2022:i:1:p:350-358 is not listed on IDEAS

    More about this item

    Keywords

    Corporate Reputation; Financial Performance;

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibf:ijbfre:v:10:y:2016:i:2:p:1-16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mercedes Jalbert (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.