Enterprises that have a good reputation are more resistant to external influences on the markets. And the reputation of a company is more important than ever when it comes to its value on the stock markets. This is the conclusion arrived at in a new study by AMO, the leading international network for strategic consulting. Data from around 1,000 companies were analysed for this scientific study, which was prepared in collaboration with London firm “Reputation Dividend”.
According to the study, 79 percent of all companies on the 15 biggest stock markets in the world increase their company’s value by working on their reputation. The following factors have been found to be the main drivers:
- The image the investors have of the long-term value performance of the company
- Trust in the quality of the company’s management
- Financial robustness of the company
- The ability of companies to successfully manage their workforce.
By contrast, factors such as corporate governance and corporate social responsibility were less important, although in themselves they have gained in importance in recent years.
Companies from the technology sectors benefit more on average from a good reputation than companies from other sectors. A strong reputation pays off most in times of crisis, since goodwill built up in advance helps companies navigate better through difficult periods.
You will find more information on the topic of reputation in the DAA trend study.