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An empirical analysis of the value of corporate reputation in explaining variations in price earnings ratios

Authors :
Little, Philip L.
Jones, Elizabeth H.
Jones, Gary H.
Source :
Academy of Accounting and Financial Studies Journal. Jan, 1999, Vol. 3 Issue 1, p110, 6 p.
Publication Year :
1999

Abstract

This research found that positive corporate reputation ratings will lead to higher price earning ratios. This finding suggest that companies that work to improve their reputation will reap the benefits of a 'reputation stock price premium' that will, in turn, help to achieve the goal of maximizing shareholder wealth.<br />INTRODUCTION The price earnings ratio has long been used as an investment analyst's tool to assess earnings growth potential and investment risks. Studies by Beaver and Morse (1978) and Zarowin [...]

Details

Language :
English
ISSN :
10963685
Volume :
3
Issue :
1
Database :
Gale General OneFile
Journal :
Academy of Accounting and Financial Studies Journal
Publication Type :
Academic Journal
Accession number :
edsgcl.208883281