Companies with Strong Reputation Can Achieve 4.78% Shareholder Return, Study Finds
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
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Source: Newsfilter
- Value of Reputation Economy: According to Burson's study, companies with strong reputations can achieve up to 4.78% in unexpected annual shareholder returns, with the global reputation economy valued at approximately $7.07 trillion, indicating that reputation's financial value has been quantified.
- AI and Employee Management: The research highlights that managing employees in the age of AI presents both challenges and opportunities, urging businesses to create an 'AI people strategy' to avoid reputational losses and earn a reputation dividend.
- Reputation Performance Gap: The study reveals that top-performing companies score an average of 11 to 15 points higher across eight reputation drivers, with the largest advantages seen in Innovation, Product, and Governance, scoring 15.5, 15.2, and 14.4 points respectively.
- Decline in Finance Sector Reputation: The finance sector has experienced a consistent decline in reputation across Leadership, Governance, and Citizenship, resulting in $4.3 billion in reputational value at risk, which constitutes 38% of its total reputational value of $11.4 billion.
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About WPP
WPP plc is a United Kingdom-based creative transformation company. The Company offers national and multinational clients a comprehensive range of communications, experience, commerce, and technology services. Its segments include Global Integrated Agencies, Public Relations, and Specialist Agencies. The Global Integrated Agencies segment includes creative agencies and media agencies. Its creative agencies provide advertising campaigns, experiences, e-commerce strategies and platforms, technology services such as CRM implementation, and more. The Company's media agencies connect brands with consumers - planning, buying and activating the distribution of creative content across the full range of media channels including digital display, search, social, television, print and billboards. The Public Relations segment helps clients communicate with their stakeholders, build reputation and manage risk. The Specialist Agencies provide customized services, including branding and design.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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