Accounting for Corporate Reputation

Focusing on the concepts of corporate social performance and organizational effectiveness, Riahi-Belkaoui and Pavlik explore the nature and importance of reputation signals assigned to U.S. firms. Accounting-based models that can be used to explain and predict these signals, including their own empirical work, are also reviewed. Utilizing a valuable data base provided by Fortune magazine, the authors also assess the market's reaction to the disclosure of reputation signals and the five year (1987-1991) performance of U.S. firms on each of eight key attributes of reputation. They conclude with insights that can be utilized by firms and investors alike.