Economics & Sociology
ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789XIndex PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
| Title: | Investors are more Sensitive to Information about Financial Rather than Ethical Reputation of a Company: Evidence from an Experimental Study |
| Issue: |
Vol. 9, No 1, 2016
Published date: 03-2016 (print) / 03-2016 (online) |
| Journal: |
Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459 |
| Authors: |
Anna Blajer-Gołębiewska
Maciej Kos |
| Keywords: | Corporate Reputation, Investment Decisions, Experiments |
| DOI: | 10.14254/2071-789X.2016/9-1/1 |
| Index PUBMS: | 9c42787d-028c-11e8-94c4-fa163e5d4f72 |
| Language: | English |
| Pages: | 11-22 (12) |
| JEL classification: | M14, G11, C91 |
| Website: | http://www.economics-sociology.eu/?379,en_investors-are-more-sensitive-to-information-about-financial-rather-than-ethical-reputation-of-a-company-evidence-from-an-experimental-study |
Abstract
The aim of the research was to identify the nature of the relationship between corporate reputation and individuals’ investment decisions. We focused on three reputational factors that influence such decisions: value of stock market analysts’ recommendation (either neutral or positive), reputation value (either positive or negative), and reputation domain (either ethical or financial). We tested two hypotheses in an online experiment and we have confirmed that investors are more sensitive to firm’s financial rather than to its ethical reputation. However, we could not confirm that a reputation damage has a stronger impact on changes in the planned investment’s value than an improvement in company’s reputation.