Contemporaneous relationship between corporate reputation and return

Thomas M. Krueger (University of Wisconsin‐La Crosse, La Crosse, Wisconsin, USA)
Mark A. Wrolstad (Economics and Finance Department, Winona State University, Winona, Minnesota, USA)
Shane Van Dalsem (University of Wisconsin‐La Crosse, La Crosse, Wisconsin, USA)

Managerial Finance

ISSN: 0307-4358

Publication date: 11 May 2010



The purpose of this paper is to examine the contemporaneous relationship between changes in corporate reputations and stock prices.


The Harris Interactive Reputation QuotientTM is used as a measure of corporate reputation. Stock return and risk measures are evaluated for each Reputation QuotientTM survey period for the years 1999‐2007.


The results provide evidence that, in the aggregate, firm reputations are procyclical. Additionally, firms with improved reputations enjoy lower volatility in their stock prices than firms with diminished reputations.

Research limitations/implications

Due to the Harris Poll Online methodology, it is not clear that the price changes occur concurrently with the change in reputation.


This paper contributes to the finance literature by examining the effect of a change in corporate reputation on stock price.



Krueger, T.M., Wrolstad, M.A. and Van Dalsem, S. (2010), "Contemporaneous relationship between corporate reputation and return", Managerial Finance, Vol. 36 No. 6, pp. 482-490.



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Copyright © 2010, Emerald Group Publishing Limited

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