Corporate reputations account for 35.3% of the market capitalization of the world's 15 leading equity market indices, equivalent to $16.77 trillion of value for shareholders. Reputation value varies widely by country and industry sector. The most valuable elements of a company's reputation are perceptions of its global competitiveness, long-term investment value, capacity for innovation, product/service quality, and quality of management. Improvements in perceptions of long-term investment value and quality will deliver the largest increases in reputation value.
Mature food companies need to use aggressive cost reduction, portfolio simplification, and substantially new approaches to growth to deliver competitive returns.
A.T. Kearney: GCC Family Businesses: Unlocking Potential Through Active Portf...Semalytix
Since 2008, times have been tough for family businesses. The antidote: tapping into hidden value.
Like families in general, family businesses seem to function relatively well in troubled times. In fact, many studies show that, in the long run, they perform better than other business models. Key factors for their ongoing success include a management perspective that emphasizes the long term, strong brand and family name recognition, and often a strong focus on the core business.1
But in the Gulf Cooperation Council (GCC), family businesses are trending in the opposite direction.2 During the recent crisis, they have been less resilient than the rest of the economy despite a pre-downturn history of rapid growth and market dominance. Since 2008, the A.T. Kearney GCC Family Conglomerate Index has decreased by 60 points, while the Bloomberg GCC 200 Index has decreased by 40 points, a 20-point performance gap (see figure 1).3 After a tough 2008, GCC family businesses rebounded to some extent (as did the market), but this did not last. As the overall market has trended mostly up, family businesses have trended downward.
- See more at: http://www.atkearney.com/paper/-/asset_publisher/dVxv4Hz2h8bS/content/gcc-family-businesses-unlocking-potential-through-active-portfolio-management/10192#sthash.sb692Hgw.dpuf
Mature food companies need to use aggressive cost reduction, portfolio simplification, and substantially new approaches to growth to deliver competitive returns.
A.T. Kearney: GCC Family Businesses: Unlocking Potential Through Active Portf...Semalytix
Since 2008, times have been tough for family businesses. The antidote: tapping into hidden value.
Like families in general, family businesses seem to function relatively well in troubled times. In fact, many studies show that, in the long run, they perform better than other business models. Key factors for their ongoing success include a management perspective that emphasizes the long term, strong brand and family name recognition, and often a strong focus on the core business.1
But in the Gulf Cooperation Council (GCC), family businesses are trending in the opposite direction.2 During the recent crisis, they have been less resilient than the rest of the economy despite a pre-downturn history of rapid growth and market dominance. Since 2008, the A.T. Kearney GCC Family Conglomerate Index has decreased by 60 points, while the Bloomberg GCC 200 Index has decreased by 40 points, a 20-point performance gap (see figure 1).3 After a tough 2008, GCC family businesses rebounded to some extent (as did the market), but this did not last. As the overall market has trended mostly up, family businesses have trended downward.
- See more at: http://www.atkearney.com/paper/-/asset_publisher/dVxv4Hz2h8bS/content/gcc-family-businesses-unlocking-potential-through-active-portfolio-management/10192#sthash.sb692Hgw.dpuf
Presentation of the eighth biennal benchmarking survey conducted by the Federation of European Risk Management Associations (FERMA).
More information on ey.com/FR/Advisory
Mercer Capital's Value Focus: Venture Capital | Mid-Year 2016Mercer Capital
Mercer Capital's Venture Capital newsletter provides perspective on some of the most relevant market trends affecting venture capital firms and other financial sponsors.
Strategic Success: Closing the Deal Isn't a StrategyTodd Antonelli
Executives involved in decision-making on key corporate acquisitions need to ask not “Are we doing things right?”
but instead “Are we doing the right things?”
Basic understanding of Cross-Border M&A
Mai Doan
20 May 2014
Why use M&A strategy?
From the buyer side:
To enter a new market
To have network foundation
To secure control over the business
Why use M&A strategy?
From the seller side:
<49%:>49%: because they can!!!
100%: to retire, get the cash and move to another business
How do they do that?
Horizontal acquisition: same industry
M&A between companies in the same industry
Vertical acquisition: in the supply chain
M&A between companies in different stages of the supply chain or distribution channels.
Related acquisition: related industry
M&A between companies in highly related industries.
Wait, so what is M&A?
M&A= Merge and Acquisition
Just another corporate strategy?
(There are different levels in an M&A transaction based on how it is done.)
Merge: Company A and Company B are willing to comes together co-equal basis.
Acquisition: Company A buys Company B’s stock in order to have management control.
Take over: Company B could not resist being hostile take over by Company A.
How about cross-border M&A?
Still exactly the same thing but more complicated because:
It’s a cross-border transaction.
Legal barriers are more complex.
The gap between business cultures is larger.
And so many other things needed to be considered.
For those who are still being confused out there, cross-border M&A is a concept in which…
It’s an international “marriage” between two companies to form a “family”.
The two parties will be responsible for the “family” finance and management strategies.
The two parties will share the profit/loss accordingly.
Cross-border M&A between Japan and Vietnam in 2013-2014
Here is just a review
Cross-border M&A really helps to overcoming entry barriers into new market.
It also saves cost but adds more skills and capability for new product development.
And it definitely create added-value and reshapes your competitive scope.
Thank you!!!
The concept of M&A and all the “tricks” along with it have been written in piles and piles of books. Please note this presentation serve the purpose to simplify the idea of cross-border M&A for a clueless person like myself. Hope it helps to introduce you to this fun and exciting remarks of the finance industry. I’m looking forward to having more to add on this topic. Anyhow, good luck!!!
Mercer Capital's Asset Management Industry Newsletter | Q1 2018 | Focus: Asse...Mercer Capital
Mercer Capital’s Asset Management Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to asset managers, trust companies, and investment consultants.
How to create value for your organization? Why TSR is the best metric for value creation? Why is it difficult to create sustainable value? How to build sustainable value creation strategy & create value for a longer period of time? Why CSR & brand value change not consider as a part of TSR? Why multiple compressions are so difficult to beat? Why investors & analyst discounts valuation multiple? How to transit majority investors without eroding TSR? How to create value in low growth economy? How to play your strategy with sustainable TSR matrix as per investors eye? Why investors communication is so important for value creation? Which strategy you should use for value creation? How to use value creation scenarios? Why cash strategy is so important in low growth economy?
If all these question bothers you before developing your company’s corporate strategy/value creation strategy then you must see your New Year’s
complimentary gift presentation
“A handy e-book on how to create sustainable shareholders value”
Presentation of the eighth biennal benchmarking survey conducted by the Federation of European Risk Management Associations (FERMA).
More information on ey.com/FR/Advisory
Mercer Capital's Value Focus: Venture Capital | Mid-Year 2016Mercer Capital
Mercer Capital's Venture Capital newsletter provides perspective on some of the most relevant market trends affecting venture capital firms and other financial sponsors.
Strategic Success: Closing the Deal Isn't a StrategyTodd Antonelli
Executives involved in decision-making on key corporate acquisitions need to ask not “Are we doing things right?”
but instead “Are we doing the right things?”
Basic understanding of Cross-Border M&A
Mai Doan
20 May 2014
Why use M&A strategy?
From the buyer side:
To enter a new market
To have network foundation
To secure control over the business
Why use M&A strategy?
From the seller side:
<49%:>49%: because they can!!!
100%: to retire, get the cash and move to another business
How do they do that?
Horizontal acquisition: same industry
M&A between companies in the same industry
Vertical acquisition: in the supply chain
M&A between companies in different stages of the supply chain or distribution channels.
Related acquisition: related industry
M&A between companies in highly related industries.
Wait, so what is M&A?
M&A= Merge and Acquisition
Just another corporate strategy?
(There are different levels in an M&A transaction based on how it is done.)
Merge: Company A and Company B are willing to comes together co-equal basis.
Acquisition: Company A buys Company B’s stock in order to have management control.
Take over: Company B could not resist being hostile take over by Company A.
How about cross-border M&A?
Still exactly the same thing but more complicated because:
It’s a cross-border transaction.
Legal barriers are more complex.
The gap between business cultures is larger.
And so many other things needed to be considered.
For those who are still being confused out there, cross-border M&A is a concept in which…
It’s an international “marriage” between two companies to form a “family”.
The two parties will be responsible for the “family” finance and management strategies.
The two parties will share the profit/loss accordingly.
Cross-border M&A between Japan and Vietnam in 2013-2014
Here is just a review
Cross-border M&A really helps to overcoming entry barriers into new market.
It also saves cost but adds more skills and capability for new product development.
And it definitely create added-value and reshapes your competitive scope.
Thank you!!!
The concept of M&A and all the “tricks” along with it have been written in piles and piles of books. Please note this presentation serve the purpose to simplify the idea of cross-border M&A for a clueless person like myself. Hope it helps to introduce you to this fun and exciting remarks of the finance industry. I’m looking forward to having more to add on this topic. Anyhow, good luck!!!
Mercer Capital's Asset Management Industry Newsletter | Q1 2018 | Focus: Asse...Mercer Capital
Mercer Capital’s Asset Management Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to asset managers, trust companies, and investment consultants.
How to create value for your organization? Why TSR is the best metric for value creation? Why is it difficult to create sustainable value? How to build sustainable value creation strategy & create value for a longer period of time? Why CSR & brand value change not consider as a part of TSR? Why multiple compressions are so difficult to beat? Why investors & analyst discounts valuation multiple? How to transit majority investors without eroding TSR? How to create value in low growth economy? How to play your strategy with sustainable TSR matrix as per investors eye? Why investors communication is so important for value creation? Which strategy you should use for value creation? How to use value creation scenarios? Why cash strategy is so important in low growth economy?
If all these question bothers you before developing your company’s corporate strategy/value creation strategy then you must see your New Year’s
complimentary gift presentation
“A handy e-book on how to create sustainable shareholders value”
Global Capital Confidence Barometer | How can you reshape your future before ...EY
The Global Capital Confidence Barometer gauges corporate confidence in the economic outlook, and identifies boardroom trends and practices in the way companies manage their Capital Agendas — EY framework for strategically managing capital. It is a regular survey of senior executives from large companies around the world, conducted by Thought Leadership Consulting, a Euromoney Institutional Investor company. Our panel comprises select global EY clients and contacts and regular Thought Leadership Consulting contributors.
Etude PwC sur le reporting intégré (sept. 2014)PwC France
http://bit.ly/Reporting-PwC
Selon une étude du cabinet d’audit et de conseil PwC, 80 % des investisseurs s’accordent à dire qu’un reporting de qualité influence leur perception de l’entreprise. Pour près de deux tiers d’entre eux (63 %), la qualité du reporting d’une entreprise pourrait avoir un impact financier direct sur le coût de son capital.
COMPANY ANALYSIS-HINDUSTAN UNILEVER LTDSaiLakshmi115
Introduction to company analysis# About the company in short # vision # mission # Standard of conduct # culture and value # business model of HUL # swot analysis of HUL # management and its structure # corporate culture and governance # Quantitative analysis of the company- HUL: Earnings, Leverages, competitive edge, production efficiency, financial analysis, cash flow, Ratio analysis # conclusion
Each year, Tenet Partners analyzes the data in
the CoreBrand Index (CBI) to determine the US
economy’s Top 100 Most Powerful Brands based on
high awareness and positive brand perceptions. 2015
marks the eighth year of the report. The report is
unique because it is based on a single, data-driven
score that assesses each brand’s familiarity and
favorability. We call this BrandPower. Powerful Brands build and nurture their brands and in turn, their create and make it
competitive – by making investments in
innovation, R&D and strategic partnerships
to drive customer-centric experiences
2019 The annual report on the world's most valuable and strongest apparel brands.
Nike continues to dominate as the world’s most valuable apparel brand, with a brand value of US$32.4billion
+ Zara and Adidas move up the ranks as H&M’s brand value decrease pushes it down to 4th place
+ Uniqlo is the fastest-growing apparel brand in the top 10, up a whopping 48% year on year
+ Rolex is the strongest brand in the sector, posting an elite AAA+ brand strength rating
+ Luxury brands account for 7 out of the top 10 strongest apparel brands, showing importance of brand strength in the segment
WE BELIEVE that our Eighth Core Portfolio investment strategy provides the answers to the previously mentioned issues and offers a truly balanced approach to investing.
Equities, bonds, real estate and commodities are four asset classes that cover the core of any asset allocation process. The Eighth Core Portfolio is based on the idea that, during any given stage of a global investment cycle, money will flow across these assets, thereby affecting their performance. Rather than time the entry into the outperformer and the exit from the underperformer the Eighth Core Portfolio invests globally across all four in equal measure thereby ensuring that it participates in the best asset class in any environment. Over the investment period a constant exposure is maintained in order to avoid any outperforming asset class becoming a drag when the market turns.
This balanced approach is designed to produce medium to long term returns which exceed those of nominal cash returns. Historical evidence shows that this strategy has had proven outperformance in various timeframes and in all environments (see Tables 1 to 3) More importantly it minimizes volatility by taking advantage of the low correlations between the individual asset classes (see Table 4).
Equity Consulting Report PowerPoint Presentation Slides is a virtual tool for financial analysts to compile their investment research insights. This private financing PPT theme is replete with data visualization tools. Use pie charts, tabular formats, and other kinds of diagrams to present information about the target company’s financial health. Our equity investment analysis PowerPoint slideshow incorporates state of the art design elements. Using this equity valuation PPT presentation you can consolidate a visually-appealing financial ratio analysis. Build a crisp industry overview involving competitive environment analysis and the latest industry trends. Our investment research PowerPoint templates help you to compile valuation analysis using various methods. Risk assessment is another important aspect that you can address with the help of this Equity research PPT slideshow. Elaborate on the types of risks like currency risk, inflation risk, and so on. Private equity consulting even helps you to identify and portray the intensity of each type of risk. https://bit.ly/3kuXvnu
Similar to What price reputation? 2019 Global Report (20)
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
2. Foreword
Methodology
Main findings
The economic impact of reputation
Country focus
Industry focus
Reputation drivers
The AMO network
About the author
2
4
6
8
10
12
14
18
20
Contents
—
AMO is the leading global partnership of strategic
advisory and communications consultancies.
We provide our clients around the world with
thoughtful counsel producing better business results.
Founded in 2001, we have a unique structure,
pairing deep local market expertise
with broad global perspective and integrated
project management.
1 What price reputation?
3. Foreword
—
In a world of growing complexity and rapid-fire stock
market volatility, investors are increasingly sensitive
to company reputations.
When times get tough, it is the companies with
stronger, more balanced corporate reputations that
will ride the storm most effectively, protect value
and come out on top. Which means, of course,
that understanding the elements that work hardest
to protect and enhance the value of their company’s
reputation is crucial to managers of any listed
company.
But this has remained hard to examine, difficult
to pinpoint and impossible to measure in any
comprehensive way, until now.
The 2019 AMO Global Reputation Value Drivers
report reveals for the first time the individual
components of corporate reputation that are creating
most value for the world’s leading blue-chip
companies and is essential insight for all concerned
with the management of the critical assets that
are corporate reputations.
Angus Maitland,
Co-Chairman of AMO
Founder of Maitland/AMO
James Abernathy,
Co-Chairman of AMO
Founder of Abernathy MacGregor/AMO
3 What price reputation?2 What price reputation?
4. Methodology
—
Drawing on research by Reputation Dividend, the AMO report spells
out how reputation contributes to the stock market valuations of over
1,000 of the world’s largest companies in 15 leading national indices.
Reputation value analysis is founded on the understanding that no single
method of valuing companies can fully explain market capitalisation
with any consistency.
Each company’s reputation value is measured by calculating the extent
to which its actual stock market capitalisation differs from the value
implied by standard financial metrics alone, such as earnings multiples,
discounted cash flows, or free cash flow yields.
The regression-based approach uses an array of data combining financial
metrics and non-financial factors including research-sourced measures
of corporate reputation to derive a “general model of investor behaviour”.
This, calibrated on an annual basis, explains close to 95% of companies’
market cap with a high degree of statistical significance.
The reputation-driven element of any individual company’s market
capitalisation is determined by applying the “general model” to
the precise circumstances of that company’s performance. This reveals
the degree to which its shares trade at a premium or discount to the
value implied by the financials alone – the supra-normal (or sub-normal)
value resulting from corporate reputation.
The research used data from Bloomberg and Morningstar to determine
the financial metrics for 1,073 companies in the 15 national blue-chip
indices. This universe comprises 67% of the companies in the indices
with 77% of the gross market capitalisation. Companies with incomplete
data histories were excluded from the analysis, resulting in 538 being
removed from the overall total of 1,611. Findings on the 1,073 were then
extrapolated to the full universe.
For our analysis of the impact of the corporate reputation indicators,
we applied the nine categories used in Fortune magazine’s annual
“Most Admired Companies” survey.
This report provides broad-based data findings by market and by
industry. For details of individual companies’ reputation contribution data,
please contact your local AMO office.
5 What price reputation?4 What price reputation?
5. Corporate reputations account for
35.3%
of the market capitalisation of the world’s
15 leading equity market indices
That equates to
$16.77 trillion(1)
of value for shareholders
Reputations supported corporate value
as markets came under pressure in 2018
Reputation value grew by 2.1%in the 12 months
to Q1 2019, while total market cap dropped 0.4%
21%
of companies have reputations that are so poor as
to be actively destroying market capitalisation
Average reputation value contribution
varies widely by industry sector
and by country
its global
competitiveness
its value as a long-term
investment
its capacity for innovation
the quality of its products
and services
The most
valuable elements
of reputation are driven
by impressions of:
The largest increases
in reputation value will be
delivered by improvements
in perceptions of:
a company’s value
as a long-term investment
its quality
of management
its financial
soundness
1 1
2 2
3 3
4
Main
findings
—
The foundations
of reputation value
7 What price reputation?6 What price reputation?
(1) Q1 2019.
6. 9 What price reputation?
Reputation value analysis measures the extent to which a company’s
corporate reputation builds, or diminishes, its share price beyond
what might reasonably be expected from financial performance.
The study began with the 1,611 companies that make up the world’s
15 leading indices and have a combined market cap of $47.52 trillion.
These were IBOV (Brazil), SPTSX (Canada), SSE (China), CAC40 (France),
DAX (Germany), HSI (Hong Kong), FTSEMIB (Italy), NKY (Japan),
AEX (the Netherlands), RTSI (Russia), IBEX (Spain), OMEX (Sweden),
SMI (Switzerland), FTSE 100 (UK) and S&P 500 (USA).
Our research showed that 35.3% of the overall market capitalisation was
attributable to corporate reputations, $16.77 trillion(1) of shareholder value.
What’s more, reputation value is growing: the gross amount rose
by 2.1% over the 12-month period to end-Q1 2019, while overall market
cap dropped 0.4%.
The evidence as to the economic impact of reputation as a whole
is clear but the numbers hide enormous variation in individual company
performance. 79% of the companies reviewed saw their stock values
shored up by corporate reputations that accounted for $17.2 trillion
of market capitalisation. At the other end of the scale however, 21%
of companies saw their market cap reduced by a total $436 billion due to
the impact of negative reputations. Corporate reputation can be a major
contributor to shareholder value but only when it’s performing well.
The economic impact
of reputation
60—
40—
20—
0—
–20—
–40—
–60—
21%of companies destroying
$436(1) billion
of shareholder value
Reputation contributions across
the 15 leading equity markets
%ofmarketcapattributabletoreputation
79%of companies creating
$17,205(1) billion
of shareholder value
9 What price reputation?8 What price reputation?
(1) End-Q1 2019.
7. Reputation impact is by no means uniformly distributed and individual
company reputations contribute value to very different degrees in different
geographies. The mix of company profiles, the number of companies
in the index and domestic conditions result in a wide spread of reputation
contributions to stock market valuations around the world.
These ranged from an average of 47% across the UK’s FTSE 100,
down to 14% in the Russian market’s RTSI index. Corporate visibility,
global operations and familiarity are breeding higher degrees of banked
reputational goodwill compared with companies in regions where the
support provided by effective corporate reputations continues to be
trumped by a need for harder evidence.
Other national indices with higher than average reputation contributions
included the Dutch AEX, Switzerland’s SMI, Germany’s DAX, the US S&P,
France’s CAC, Sweden’s OMEX and Hong Kong’s HSI.
Indices with lower than average reputation contributions were Spain’s
IBEX, Japan’s Nikkei, Canada’s SPTSX, China’s SSE, Brazil’s IBOV and
Italy’s MIB.
Reputation performance by market reveals that while the average
contribution varies substantially, high performance is less spread out.
Whereas average contributions range 33 percentage points (from 47%
down to 14%), “top performance” ranges just 17 percentage points
(from 56% down to 39%). While country difference is driven in part by the
number of constituents in the index – with the larger indices including
proportionately more smaller companies, often with lower contributions – it
is clear from the scale of the spread that there is considerable value growth
to be had by companies deploying appropriate reputation stewardship.
UK(FTSE100)
TheNetherlands(AEX)
Switzerland(SMI)
Germany(DAX)
USA(S&P500)
France(CAC)
Sweden(OMEX)
HongKong(HSI)
Spain(IBEX)
Canada(SPTSX)
Brazil(IBOV)
Japan(NKY)
China(SSE)
Italy(FTSEMIB)
Russia(RTSI)
Average
60—
40—
20—
0—
–20—
–40—
–60—
%ofmarketcapattributabletoreputation
Country
focus
Reputation contribution range by equity market
Highest, lowest and average
11 What price reputation?10 What price reputation?
8. The average contribution of corporate reputation to market cap varies
widely across industry sectors, with “new economy” companies displaying
the greatest value in their good names.
The study shows that corporate reputations are contributing more value
to companies in “high future-potential” sectors such as technology, telecom
and healthcare, compared to more immediately predictable sectors like
oil & gas, basic materials, industrials or utilities.
Technology companies enjoyed an average reputation of 43% over the
value implied by financial metrics alone. Other sectors with a reputation
contribution above average were telecommunications (39%), healthcare
(39%), consumer goods (38%) and consumer services (36%).
At the other end of the scale, utilities saw their stock market capitalisations
boosted just 25% on average by reputations operating well below the
35.3% average. Other sectors below the overall average were oil & gas
(32%), basic materials (29%) and industrials (28%).
These industry averages provide an important benchmark for the analysis
of individual companies’ reputations. By comparing a company’s
reputation contribution to its industry average, executives at lower-ranked
companies can now assess the realistic value growth opportunities to be
had by improving their group’s reputation to the broader industry standard
or, indeed, beyond.
Conversely, for those companies which today enjoy a reputation contribution
above the industry norm, it highlights the value at risk if it were to come
under pressure or slip.
43.0%Technology
Average
35.3%
Technology
Telecommunications
Healthcare
Consumergoods
Consumerservices
Financials
Oil&gas
Basicmaterials
Industrials
Utilities
25.2%
43.0%
45—
40—
35—
30—
25—
20—
15—
10—
5—
0—
%ofgrossmarketcap
Industry
focus
Average reputation contribution
(market cap weighted)
13 What price reputation?12 What price reputation?
9. 15 What price reputation?14 What price reputation?
Reputation value, calculated as the extent to which a company’s
corporate reputation builds, or diminishes, its share price beyond what
might reasonably be expected from financial performance, is driven
by impressions of different reputational factors.
To assess their impact, the AMO study applied the nine criteria found
in Fortune magazine’s annual “Most Admired Companies” survey
to calculate their economic contribution. From there we compiled
the overall reputation risk profile by analysing the perceptions of the
324 companies in the Fortune list which appear in the 15 national
blue-chip equity indices. Those companies had a combined market
cap of $20.53 trillion, 43% (by value) of the 1,611 companies included
in the review.
The results of the reputation risk profile were extrapolated across the full
universe to show two things:
• the reputation driver contribution – the stock market value delivered
by each separate headline component of reputation across the universe
of companies reviewed;
• the reputation leverage – the extent to which improvements
in perceptions of the separate reputation drivers deliver increases
in market cap.
Innovation
$1.75 trillion
Use of corporate assets
$1.87 trillion
Quality of management
$2.09 trillion
Financial soundness
$2.05 trillion
People management
$1.97 trillion
Long-term investment value
$2.18 trillion
Quality of products/services
$1.71 trillion
Social responsability
$1.65 trillion
Global competitiveness
$1.50 trillion
Reputation
drivers
The AMO study does not report the impact of the reputation drivers on
individual companies. Details of individual company performance can be
discussed with your local AMO office.
Reputation risk profile
Location of gross reputation value
10. 16 What price reputation?
Reputation value driver impact
(all company average)
Innovation
High (current)
value contributors
13%—
12%—
11%—
10%—
9%—
8%—
7%—
%ofmarketcapattributabletoreputation
People
management
Quality of
management
Financial
soundness
Use of
corporate
assets
Social
responsability
Long-term
investment value
Global
competitiveness
Quality of
product/
services
0.3% 0.4% 0.5% 0.6% 0.7% 0.8% 0.9%
Factor Leverage – growth potential(1)
Leveraging corporate reputation for value growth
The greatest opportunities for the most effective reputation value
management are to be found in aligning the sources of highest
reputation contribution extant with the factors that can leverage
the largest gains in value tomorrow.
Companies can achieve disproportionate impact by changing
perceptions in just a small number of reputation drivers, obtaining
higher returns on communications investment.
The “average” company displaying an average reputation value driver
profile needs to balance communications to support reputation value
already created – high current value contributors – with the most
productive sources of growth – high value potential. Top of the list is
enhancing perceptions related to “long-term investment potential”. This
is the driver which ranks highest as a value contributor and also offers
significant leverage potential. Beyond that, the “average” company would
need to ensure that strengths in impressions of management prowess,
people management and financial soundness are maintained while
tapping into the opportunities presented by improving perceptions
of global competitiveness and innovation.
Conversely, while seemingly unproductive factors such as CSR
characteristics currently rank as low contributors with limited leverage
potential, they can undoubtedly have sufficient impact to make their
presence in corporate communications and messaging highly opportune.
(1) Market cap growth corresponding to a 5% rise in factor perceptions.
High growth
potential
17 What price reputation?
11. Local expertise, global reach
AMO is the leading international network of strategic advisory and
communications consultancies, providing best-in-class financial
communications advice for corporations and institutions in the most
important markets around the globe.
We provide thoughtful counsel to corporate boards and executives.
Our mission is to help them achieve critical business goals through
our powerful influence in local markets, our deep sector expertise,
our broad global perspective and our ability to collectively provide
seamless project management to our clients around the world,
particularly in the key financial centres of Europe, Asia and the Americas.
Our best-in-class approach brings together local-market leaders
with unrivalled knowledge of stakeholder perceptions, financial markets
and transformative company events, ranging from cross-border
transactions, large-scale crises, activist situations, and regulatory matters
to bankruptcy and restructuring situations.
AMO is unique among international networks because it is founded
on the strength of a partnership between national local agencies,
each best-in-class in their markets, that has produced meaningful results
for its clients since AMO was founded in 2001.
The AMO network has consistently featured at the top of the global
M&A advisory rankings over the last fifteen years. In 2018, AMO agencies
advised on almost 300 M&A deals worth approximately €240 billion.
AMO is backed by Havas, one of the world’s largest global communications
groups, founded in 1835 in Paris.
The AMO
network
—
Australia – Financial & Corporate Relations FCR / Poland – NBS
Communications / Russia – EM / South Korea – Macoll
Associates
Partners
19 What price reputation?18 What price reputation?
Canada
France
Germany
Hong Kong/China
Japan
Netherlands
Sweden
Switzerland
USA
UK
12. 20 What price reputation?
Simon Cole is the founder and director
of Reputation Dividend, an independent
corporate reputation and brand research
consultancy specialising in economic
reputation analytics.
After training as a mathematician
and economist, Simon spent nearly
thirty years in brand, advertising and
communications consultancy. In the
course of that time, he has worked
for many of the world’s leading
brand owners in the UK, Europe,
and the Americas.
His specialisation in corporate brand
planning and analytics led him
to develop Reputation Dividend in 2009
to better serve the increasing needs
for greater objectivity in reputation
management and connectivity with wider
brand management.
Contacts
Charles Fleming
Chief Marketing Officer
AMO
charles.fleming@havas.com
+33 6 14 45 05 22
Simon Cole
Founding Partner
Reputation Dividend
simon@reputationdividend.com
About
the author
—