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Mass-Media-based Corporate Reputation and Firms’ Market Valuation – Evidence from Emerging Markets

Abstract

Drawing on institutional and corporate reputation theory, this study investigates the impact of mass-media-based corporate reputation on firms’ market value in the emerging markets. Further the study analyzes the moderating impact of business group affiliation and the social media presence of Chief Executive Officers (CEOs) on corporate reputation and firm valuation relationship. From a sample of fast-growing industries in India, the study finds that corporate reputation that the firm earns in mass media does enhance its market value and impact is higher when firm is standalone compared with when it is affiliated to a business group and when the firm’s CEO is present on social media through Facebook, LinkedIn and Twitter.

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Agnihotri, A. Mass-Media-based Corporate Reputation and Firms’ Market Valuation – Evidence from Emerging Markets. Corp Reputation Rev 17, 206–218 (2014). https://doi.org/10.1057/crr.2014.10

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  • DOI: https://doi.org/10.1057/crr.2014.10

Keywords

  • corporate reputation
  • emerging markets
  • social media