Research Article

Corporate reputation and sustained superior financial performance

  1. Peter W. Roberts1,*,
  2. Grahame R. Dowling2

Article first published online: 19 SEP 2002

DOI: 10.1002/smj.274

Issue

Strategic Management Journal

Strategic Management Journal

Volume 23, Issue 12, pages 1077–1093, December 2002

Additional Information

How to Cite

Roberts, P. W. and Dowling, G. R. (2002), Corporate reputation and sustained superior financial performance. Strat. Mgmt. J., 23: 1077–1093. doi: 10.1002/smj.274

Author Information

  1. 1

    Graduate School of Business, Columbia University, New York, U.S.A.

  2. 2

    Australian Graduate School of Management, University of New South Wales, Sydney, Australia

*Graduate School of Business, Columbia University, Uris Hall, 3022 Broadway, Room 703, New York, NY 10027-6902, USA.

Publication History

  1. Issue published online: 4 NOV 2002
  2. Article first published online: 19 SEP 2002
  3. Manuscript Accepted: 23 MAY 2002
  4. Manuscript Received: 8 MAR 2000

SEARCH

SEARCH BY CITATION

ARTICLE TOOLS

Get PDF (172K)

Keywords:

  • reputation;
  • persistent profitability;
  • intangible assets

Abstract

Good corporate reputations are critical because of their potential for value creation, but also because their intangible character makes replication by competing firms considerably more difficult. Existing empirical research confirms that there is a positive relationship between reputation and financial performance. This paper complements these findings by showing that firms with relatively good reputations are better able to sustain superior profit outcomes over time. In particular, we undertake an analysis of the relationship between corporate reputation and the dynamics of financial performance using two complementary dynamic models. We also decompose overall reputation into a component that is predicted by previous financial performance, and that which is ‘left over’, and find that each (orthogonal) element supports the persistence of above-average profits over time. Copyright © 2002 John Wiley & Sons, Ltd.

Get PDF (172K)