An Empirical Study On Influencing Factors Of Corporate Reputation In China's Market-Staketholder Perception

Sanlu Dairy, Toyota and other major domestic and international well-known enterprises' corporate reputation crisis makes corporate reputation become a world-wide prominent issue. The introduction of reputation of information theory to stakeholders management theory makes corporate reputation and corporate financial and nonfinancial indicators have the inevitable connection between. Rooted in the U.S. and other Western developed market economy environment, the theory of asymmetric information, reputation of information theory and stakeholders management theory, in explaining the enterprise behavior characteristics in the developed economies, often can find more consistency. China had just entered the door to market economy, the institutional environment of enterprises' survival and development has unique characteristics, so there may remains a discrepancy between the characteristic of corporate behavior and theories. This paper references the theoretical results of developed market economies to study the relationship of financial and nonfinancial indicators and enterprise's reputation, hoping to provide some useful reference information for the Chinese market enterprise reputation management research.Firstly, this paper reviews the empirical literatures and basis theories about corporate reputation research, then uses the asymmetric information theory, reputation of information theory and stakeholders management theory to analysis the relevance of theoretical reasoning between the financial and nonfinancial indicators and corporate reputation, then combine with the characteristic of the Chinese market proposes the hypotheses about the relationship between corporate reputation and financial indicators to provides the basis for empirical research. This study selects 319 corporate of International reputation institute's(China) "China market, corporate reputation measurement 100 List" among 2006-2009 as sample, uses reputation indexes as a measure of corporate reputation, uses the enterprises' financial and nonfinancial indicators as the influencing factors of reputation, making a regression analysis on the relationship between the corporate reputation and financial indicators. Firstly, make a multiple regression analysis to test the influence of financial and nonfinancial indicators to corporate reputation; Then considering the endogeneity problem, use Hausman test to examine the existence of endogenous; Finally, make a test for the robustness of the model.Empirical analysis proved the hypothesis, the result is anticipated, market performance indicators, accounting profit indicators, accounting risk indicators and diversification indicators have significant impact on corporate reputation. Local corporate and multinational enterprises shows a difference in market risk and enterprise scale, in a certain degree, this can reflect the characteristics of Chinese local enterprises. Institutional ownership shows an unexpected important influence on corporate reputation. Anyhow, the analysis results prove that use the financial and nonfinancial index to characterize corporate reputation has certain rationality. Meanwhile, the result of the study demonstrates the notion that firms compete for reputation in a market characterized by incomplete information.The article concludes with a plain inspiration which obtained from the results of theoretical and empirical analysis, and hopes to provide useful reference information for the field of reputation management research or corporate'businesses operating in the Chinese market.