Does Corporate Reputation Improve Stock Performance in an Emerging Economy ? Evidence From Turkey

Abstract

Corporate reputation has long been recognized as a valuable asset and several studies have investigated the relationship between reputation and various performance measures. However researchers have reached conflicting results for companies in developed countries indicating positive conditionally positive and even no relationship. This study finds that a portfolio of highly admired firms in an emerging economy earns about 10 percent less than that market's overall portfolio annually and discusses possible explanations for this finding.