Dr. Krueger Wins McGraw-Hill Distinguished Paper Award
Thomas M. Krueger & Mark A. Wrolstad won the 2016 MBAA International McGraw-Hill Education Distinguished Paper Award for the Academy of Finance Division. The winning paper is titled, "Looking beyond the Pale: Evidence that Investors Look Beyond Concurrent Annualized Returns in Assigning Corporate Reputations." It was chosen from among approximately 79 papers presented within the Academy of Finance at the 2016 MBAA International Conference in Chicago, Illinois April 13-15. The Academy of Finance is the second largest of eleven formal academic organizations making up MBAA International, with an average of 83 participants at the annual meeting over the 2012-2015 period. In 2015, there were 728 primary and 83 secondary registrations, for a total of 811 overall MBAA International registrations.
This analysis evaluates the impact of stockholder returns on public perceptions of corporation's reputation. It uses Reputation Quotients® (RQs), which has been produced by Harris Interactive since 1999, to objectively quantify corporate reputations. Both price-based returns and total returns (i.e., including dividends) are considered. Although, the portfolio of ten firms with the best reputations had earned a higher risk-adjusted return, the difference between these returns and the returns of a portfolio of ten firms with the worst reputations was not statistically significant. This finding suggests that investors look beyond the pale of current stock market performance when classifying a firm's reputation.