Corporate Reputation and Scientific Reputation: The Mysterious Case of Girard and Agassiz

This analysis investigates the link between perceived institutional stability and organizational reputation by investigating firms traded on the Warsaw Stock Exchange (WSE). Sizeable changes in the overall valuation of the WSE are indicative of changes in the perception of institutional stability. Major stock market advances result in an increased ability to predict reputation with investors. Major stock market declines result in a reduced ability to predict reputation with investors. Thus strong evidence is found that the perceived stability of the institutional environment has a significant effect on the ability of the firm to establish itself as reputable.