Corporate reputation and shareholder investment: a study of Egypt’s tourism listed companies

Abstract

Purpose This study aims to investigate the impact of corporate reputation on investors and whether it infuences company investment returns. While previous research has focused on specifc components of reputation, neglected risks associated with the analyzed frms, and relied on accounting performance metrics, this study takes into account both return and risk factors to examine how they afect corporate reputation and investment decision-making. Design/methodology/approach Data were collected from 300 active investors in the Egyptian exchange stock market, and the seven-paradigm RepTrak model was used to assess reputation structures and expected return and risk. Structural equation modeling was employed to confrm the theories. Findings The fndings highlight that investors demonstrate a primary focus on the fnancial performance of organi‑ zations when making stock market decisions, while also considering non-fnancial factors such as products, innova‑ tion, citizenship, governance, and emotional appeal. Their prioritization of investment returns and risks takes prec‑ edence over evaluating workplace practices. Originality/value This study’s originality lies in its incorporation of return and risk measurements as crucial invest‑ ment choice variables, contributing to the fnancial markets’ research on corporate reputation. By managing their reputation, corporations can enhance investors’ demand for their stocks and optimize their investment opportunities.