Abstract:
Looking at the market-to-book ratio of stock quoted companies reveals that the major part of a firm's value is based on intangible assets. Corporate reputation has frequently been denoted as the most valuable intangible asset, not least because of its strong exclusiveness and irreplicability. Though there is a universal agreement on its importance, a consensus on its measurement is far from being achieved. In 2004, a comprehensive measurement and explanation model was suggested by Schwaiger (2004), based on prior research, qualitative studies and a large multinational data set, conceptualizing corporate reputation as an attitudinal construct and splitting it into an affective and a cognitive component. The model has shown a significant goodness-of-fit within Western cultures, which triggers us to extend the model to different countries with different cultures. Since China is becoming an indispensable part of the world market and because ever more foreign companies are entering this market, corporate reputation management in China seems promising. Our empirical study in the Chinese context shows the applicability of our model in China as well.
