This paper explores the reputations of 63 German firms over the period 1988 to1998. It considers what factors may affect firm reputations, and how and whyreputations change over time. The reputation data come from Manager Magazinssurvey that is similar to the one compiled annually in the US by Fortune.The results show that firm reputations fluctuate over time. These fluctuationsreflect a) firms concerted and consistent efforts to improve reputation or b) newsreports critical of firms and specific negative incidents that diminish reputation.Participation in industries with high reputations may limit fluctuations over timebut firm effects are still important across industries.The analysis also shows firm reputation and financial performance are positivelyrelated. While the response of financial performance on reputation iscontemporaneous, the response period of reputation investments on financialperformance is longer. In addition, the findings suggest that there is no financialhalo in the German reputation data. And finally, large firm size in itself has asignificant and favourable impact on firm reputation and ownership concentrationalso influences reputation positively.
