Chapter 2. What are Reputations Worth?

No matter how receptive executives are to the idea that reputations matter, there’s no denying them the inevitably punchy question, so, what’s a reputation really worth? Everyone wants an answer, from the communications chieftains to the heads of marketing and finance, from the senior C-level staff to the company’s board of directors. Indeed, this remains by far the most frequent question we’re asked and the most problematic issue facing business researchers. It involves demonstrating a quantitative relationship between a public company’s reputation and the financial value of its shares. Unfortunately, as this chapter shows, proving such a relationship is no simple matter, and quantifying the financial value ...

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