The Role of Corporate Reputation in Determining Investor Satisfaction and Loyalty

Abstract

Prior research suggests that corporate reputation is a determinant of initial investment decisions, possibly leading to detrimental stock choices. Its effect on established investor relationships, namely investor satisfaction and loyalty, are novel research areas. The present paper discusses findings of a study among German investors of a publicly traded company that put into perspective the aforementioned detrimental choice-effect, the impact of reputation on individual investor behavior and reveals a diversity of loyalty effects of corporate reputation.