ABSTRACT
In this paper, we analyzed how the premium exchange markets (status), the board of directors and the organizational characteristics affect the reputation of Brazilian public companies. Based on 1.396 observations collected between the years 2002 and 2007 on the BM&F Bovespa, we used a selection model in two stages to show that companies that are part of the New Market, such as the US market through American Depositary Receipt (ADR), are more likely to be admired. However, this does not influence the differentiation of reputation. It is also possible to verify that the capital of the boards through weak ties is present in companies with outstanding reputation. In addition, the results indicate that profitability and size of the firm are also positively associated with reputation. Unlike what was hypothesized, the clustering coefficient affects negatively the reputation, referring to the so-called dark side of the net. Finally, it is clear that the financial leverage has a paradoxical effect: among the most admired companies, leverage is positively related to the reputation increasing, but among those least admired, the debt presents a reverse effect.
Keywords:
reputation; premium exchange markets; board; status