Abstract
In this paper, we explore why certain firms are admired while others are not. We examine a broad range of organizational, governance and financial variables to glean significant factors that impact a firm's status as ‘Most Admired’. On the basis of our analysis of 1,842 firms, 285 of which were featured in Fortune's Most Admired companies list, we found that factors important to corporate reputation did not necessarily play a definitive role in companies being ranked on the most admired list. The major finding, robust in all cases, is that a larger size, prior ranking on the ‘Most Admired Companies’ list and a high market-to-book value of shares have a positive significant effect on a firm's likelihood of being classified as ‘Most Admired’. Consistent with prior literature, we also find that increases in executive entrenchment, via curtailment of shareholder rights, are viewed negatively by the stakeholders. From a strategic perspective, if a firm wishes to be admired, it would do well with a reasonably sized work force, a better market performance and a more democratic form of corporate governance.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
