Academic Research

Corporate Reputation Review (2007) 10, 22–37. doi:10.1057/palgrave.crr.1550036

The Role of Corporate Reputation in Determining Investor Satisfaction and Loyalty

Sabrina Helm1

1Strategic Marketing Department, Witten/Herdecke University, Witten, Germany

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Abstract

Prior research suggests that corporate reputation is a determinant of initial investment decisions, possibly leading to detrimental stock choices. Its effect on established investor relationships, namely investor satisfaction and loyalty, are novel research areas. The present paper discusses findings of a study among German investors of a publicly traded company that put into perspective the aforementioned detrimental choice-effect, the impact of reputation on individual investor behavior and reveals a diversity of loyalty effects of corporate reputation.

Keywords:

corporate reputation, investor satisfaction, investor loyalty, reputation measure, structural equation modelling, partial least squares

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