Reputation of Financial Services Companies: A Factor-Analytic Investigation

Abstract

This work attempts to relate a company’s financials to its reputation and measure reputation risk of publicly traded financial service companies. This research contributes to a better understanding of reputation risk by getting previous literary works together. In the course of study, variables derived from company’s financials have been investigated using Factor Analysis, which has helped in providing a new perspective to the definition of corporate reputation. Quantitative and qualitative hypotheses have also been formulated, tested and explained using previous research work. The study can be seen as another step towards quantification of the term reputation. The study recommends that inclusion of company’s financial data helps in studying corporate reputation quantitatively, and a hybrid type analysis that combines both investor’s perspective and financials is an effective way to measure reputation.