The impact of corporate reputation on stock value

Abstract

In the continuous development of the socialist market economy, corporate reputation as an intangible asset provides a unique and sustainable competitive advantage. The study found that in China 's stock market, when companies encounter a crisis, the negative impact on the stock value of companies with good reputation in the short term will be stronger than that of companies with poor reputation. However, in the long run, corporate reputation will have a ' shadow price ' role. It will quickly alleviate the negative impact of the crisis on the stock value of the company and will obtain significantly positive abnormal returns.When enterprises encounter benefits such as listing, good corporate reputation such as China 's time-honored enterprises can succeed in the financial market with good reputation and are favored by investors. Because its reputation can promote the compatibility of management interests and form a good cycle of consciously maintaining reputation, it shows good market performance and stock value.