The Relationship Between Corporate Reputation And Stock Values In Crisis

Recently, more and more entrepreneurs and academics begin to pay more attention to corporate reputation, because reputation has been considered as a sustainable competitive advantage. But nowadays most of the researchers focus on the measurement or evaluation of reputation and the relationship between reputation and corporate performance (especially financial performance), and researches has mostly been limited to theoretical concepts and business cases. This paper will use empirical method to analyze the impact of reputation on stock returns in a crisis background.This article will choose Melamine Crisis as background and food manufacturing and food processing industry as our research sample, analyzing the impact of corporate reputation on stock returns and the moderation effect of crisis impact degree.The results are as follows:(1)crisis has a negative impact on the stock return; (2)in the short term, corporate reputation is negatively related to stock return, while in the medium and long term, corporate reputation don't have significant impact on stock return; (3)in the medium and long term, crisis impact degree significantly moderate the relationshio between corporate reputation and stock return.The conclusion has successfully explained the reason why there are two opposite views of the relationshio between corporate reputation and stock return, making theoretical contribution to the corporate reputation theory. The results of this paper will help the management of corporate, stakeholders and stock market investors make a more reasonable decision in the case of a crisis.