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Corporate performance and firm perception: The British experience

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  • Sudhir Nanda
  • Thomas Schneeweis
  • Kristina Eneroth

Abstract

Previous academic research has presented a theoretical basis for a relationship between attributes of a firm's reputation and its financial performance. For the United States, researchers have analysed the correspondence between market and accounting based measures of US firm performance and external evaluators' perceptions of the qualitative attributes of US firms. In this study, expert surveys on the qualitative performance of British firms conducted by the British publication, the Economist, which are similar in content to surveys conducted by Fortune magazine for US firms, are used to determine the correspondence between qualitative and quantitative measures of British firms' performance. Results indicate that differences may exist between US and Britain in the use of qualitative survey data on a firm's strategic attributes as a forecast of a firm's future quantitative performance measures. Results also indicate that for small firms, certain qualitative factors (e.g. capacity to innovate) may be of greater importance in forecasting accounting and security market returns.

Suggested Citation

  • Sudhir Nanda & Thomas Schneeweis & Kristina Eneroth, 1996. "Corporate performance and firm perception: The British experience," European Financial Management, European Financial Management Association, vol. 2(2), pages 197-221, July.
    • Handle: RePEc:bla:eufman:v:2:y:1996:i:2:p:197-221
    DOI: 10.1111/j.1468-036X.1996.tb00038.x
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    References listed on IDEAS

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    1. De Bondt, Werner F M & Thaler, Richard, 1985. "Does the Stock Market Overreact?," Journal of Finance, American Finance Association, vol. 40(3), pages 793-805, July.
    2. Shefrin, Hersh & Statman, Meir, 1994. "Behavioral Capital Asset Pricing Theory," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 29(3), pages 323-349, September.
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    Cited by:

    1. Parvez Ahmed & Sudhir Nanda & Oliver Schnusenberg, 2010. "Can firms do well while doing good?," Applied Financial Economics, Taylor & Francis Journals, vol. 20(11), pages 845-860.
    2. Amanpreet Kaur & Balwinder Singh, 2018. "Corporate Reputation: Do Board Characteristics Matter? Indian Evidence," Indian Journal of Corporate Governance, , vol. 11(2), pages 122-134, December.
    3. Mercedes Rubio-Andrés & Mª Ramos-González & Miguel Ángel Sastre-Castillo, 2022. "Driving innovation management to create shared value and sustainable growth," Review of Managerial Science, Springer, vol. 16(7), pages 2181-2211, October.
    4. Amanpreet Kaur & Balwinder Singh, 2019. "Does Investment in R&D Affect Firm Reputation: Indian Experience," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 5(2), pages 98-109, July.
    5. Junttila, Juha & Kallunki, Juha-Pekka & Karja, Aki & Martikainen, Minna, 2005. "Stock market response to analysts' perceptions and earnings in a technology-intensive environment," International Review of Financial Analysis, Elsevier, vol. 14(1), pages 77-92.
    6. Amanpreet Kaur & Balwinder Singh, 2021. "Does Firm’s Size Speak of Its Reputation? Indian Evidence," Global Business Review, International Management Institute, vol. 22(4), pages 1038-1053, August.
    7. Amanpreet Kaur & Balwinder Singh, 2018. "Measuring the Immeasurable Corporate Reputation," Metamorphosis: A Journal of Management Research, , vol. 17(1), pages 53-64, June.
    8. Francisco J. Callado†Muñoz & Natalia Utrero†González, 2011. "Does It Pay to Be Socially Responsible? Evidence from Spain's Retail Banking Sector," European Financial Management, European Financial Management Association, vol. 17(4), pages 755-787, September.
    9. Tutun Mukherjee & Som Sankar Sen, 2022. "Impact of CEO attributes on corporate reputation, financial performance, and corporate sustainable growth: evidence from India," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-50, December.

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