Analysis of the circular relationship between corporate reputation and the creation of patrimonial economic value
Análisis de la relación circular entre reputación corporativa y creación de valor económico patrimonial
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Determining if companies should incorporate social aspects in their management strategies to satisfy the expectations of their different stakeholders presents theoretical postures and previous empirical evidence both for and against it. The objective of this study consists of analyzing the existing relationship between corporate reputation and the creation of patrimonial economic value in the companies sought-after in the Spanish stock market in the 2000-2012 period by applying a methodology of panel data. The obtained results show us that reputation has a positive influence in the creation of patrimonial economic value and that, at the same time, a higher company value leads to a higher corporate reputation showing a bi-directional relationship, which provides feedback to the two variables that are the subject of this study. These results have important implications for management as they legitimize the integration of corporate social responsibility practices in big Spanish companies sought-after in the stock market.
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