What Is the Value of Reputation?

Reputations of corporate organisations are valued in monetary terms relative to share capital using an Event Tracking method. Reputational events are first identified from turning points on time series of daily sentiment scores. Sentiment and share prices are then traced after those events. A sentiment projection, derived from a neural network, is then made for the periods immediately following each event. Reputation monetisation is measured by comparing the difference between actual and projected sentiment, compared with the corresponding share price change. The results indicate that reputation accounts for less than 9.6% of total share capital for 90% of cases investigated, with a mean value of 5.2%. We contrast these results with previous higher estimates, which are based on subjective spot surveys.