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SOURCE Reputation Dividend
Corporate Reputations Double in Shareholder Value
NEW YORK, May 22, 2014 /PRNewswire/ --
The corporate reputations of companies listed on the New York Stock Exchange's S&P500 account for close to $3.7 trn, or 21% of total market capitlization. As a trend seen in other markets, this has more than doubled in five years, according to the seventh annual study published today by intangible asset specialists, Reputation Dividend.
Analysts found that since the depth of the recession, 26% of America's market capitalization recovery is directly attributable to the growth in reputation impact.
According to Simon Cole, Founder of Reputation Dividend, "the recent optimism for the market's upturn was strongly based on intangibles such as corporate reputation as financials struggled to deliver against expectations. We found that the total market capitalization of the S&P is $1.1 trn higher due to professional management of reputation in the last five years."
With Apple's reputation sliding for the third-year running, the study placed Walt Disney as the top performer in terms of reputational contribution for 2013.
Reputation Change vs Reputation The Top Ten Contribution 2013 2013 rank Value Walt Disney 49.8% 2.2% 9 $65,081 Apple 49.7% -5.1% 3 $240,011 Google 48.8% -1.5% 5 $184,873 Exxon Mobil 47.1% -7.8% 2 $202,172 Occidental Petroleum 46.6% -5.7% 4 $34,300 Chevron 43.9% -5.0% 6 $101,382 Caterpillar 42.9% -4.9% 8 $24,621 International Paper 42.9% 8.4% 47 $9,125 Qualcomm 42.7% -5.5% 7 $53,260 Comcast 42.4% 13.1% 77 $58,260
Reputation Dividend's Sandra Macleod added: "Reputation is material for organizational success. Studies such as this quantify how it continues to be a major driver of corporate value, and show precisely where focus is needed to support investor sentiment and ultimately, the market's trust in future performance. It also serves to underline the importance of including reputation among a company's risk priorities. As the economy continues to recover, we expect to see intangibles making a deeper inroad into decision-making and overall shareholder value."
The full study can be found on: Summary of 2014 US Reputation Dividend Report
Founded by ex Interbrand specialist, Simon Cole, Reputation Dividend is the first index of the financial value of corporate reputation as measured as a percentage of market capitalization. This is the seventh Annual Report, covering some 350 of the largest companies in the US. The 2013-14 US study ran in parallel with its sister UK study and was based on data reported from late 2013 through to the start of 2014.
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