Financial Performance

Financial performance is defined as a firm’s key measure of financial success over time, such as return on sales or overall competitiveness. Exploring the quantifiable effects of corporate reputation on firms’ financial performance has been a top research priority for scholars for many years. Financial performance is tied to corporate reputation in several ways. First, managers justify investments in building and preserving a good reputation. Numerous scholars have assessed the impact of reputation on measures of financial success, substantiating companies’ efforts to dedicate resources toward systematic reputation tracking and management. In today’s globalized economy, reputation is commonly conceived as a key metric, providing a source for maintaining and enhancing companies’ competitiveness. This entry illustrates the financial impact a good reputation has on selected stakeholders of ...