Analysts value reputation: study

New research reveals that financial analysts in the region are more concerned with corporate governance standards than their global counterparts.

'Return on Reputation' the latest Hill & Knowlton Corporate Reputation Watch study conducted by Mori, polled 282 analysts in North America, Europe and Asia-Pacific, finding a strong correlation between reputation and return on shareholder value. Quality of leadership narrowly emerged as the most important factor driving Asia-Pacific analyst recommendations with 88 per cent, ahead of financial performance (87 per cent), and making good on promises (87 per cent). "Listed companies in Asia Pacific -- many of whom have shareholders around the world -- should note that reputation matters more than ever," said Denise Maguire, Hill & Knowlton Asia-Pacific head of financial communications. "Those that neglect crucial drivers of reputation, such as corporate governance, transparency, communication with stakeholders, treatment of employees and corporate social responsibility, are being told that there is a price to pay. "Companies which do care about perceptions can expect to be rewarded in terms of analyst confidence and share price."