Study Of Corporate Reputation And Financial Performance Relationship

With the development of the economy, the corporate reputation is keened by more and more people. The stakeholders of the corporation prefer evaluating a company by viewing its reputation, while the corporation should pay more attention to its financial condition to make sure the enterprise is working healthy and efficiency. As a result, it is the subject of this article to find out the best joint of corporate reputation and financial performance.This article reviewed other researchers' out comings and the methods they had used from three dimensions such as the principle of the corporate reputation, the method to evaluate the financial performance and the relationship between corporate reputation and corporate reputation. Based on the research conditions, we choose five stakeholders which were stockholder, manager, supplier, customer and creditor to make out the relationship model.The author first checked the relationship model by using the data of abroad corporations. The result of the correlations analysis showed that the significance is too weak to support the model. From the view of the stakeholders, the author changed the basic financial index to five factors by factor analysis. Then the author still used the correlation analysis to testify the model. The result indicated that there was a significant positive relationship between the corporate reputation and financial performance.In order to find out the practicability of the model, the author also used the companies' data in China mainland, the result of the discriminate analysis from the ST group to the no-ST group implied the model was still useful, and there were some special character in Chinese corporations.At last, the author indicates the practicing value of this article's conclusion and its limitation, followed by the suggestions for the subsequent study.