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Equity Investors

In: Reputation, Stock Price, and You

Author

Listed:
  • Nir Kossovsky

Abstract

Equity investors express their expectations mostly by buying or selling shares. Through these direct behaviors, they establish stock prices and earnings multiples. Firms with superior reputations benefit from higher multiples on earnings. Poor reputations tend to result in higher stock price volatility and greater vulnerability to headline risks. In a reputational crisis, any firm may experience a collapse in stock price.

Suggested Citation

  • Nir Kossovsky, 2012. "Equity Investors," Springer Books, in: Reputation, Stock Price, and You, chapter 0, pages 143-163, Springer.
  • Handle: RePEc:spr:sprchp:978-1-4302-4891-0_7
    DOI: 10.1007/978-1-4302-4891-0_7
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