Are high-quality firms also high-quality investments?

Antunovich, Peter; Laster, David S.; Mitnick, Scott

Journal Article

Are high-quality firms also high-quality investments?

Abstract: The relationship between corporate reputation and investment results is the subject of ongoing debate. Some argue that high-quality firms ultimately provide superior stock price performance; others counter that stock prices already reflect these firms' prospects for growth and profitability. This study advances the debate by providing fresh evidence that investing in high-quality firms yields above-average returns and that these superior returns continue for up to five years.

Keywords: Stock - Prices; Corporate profits; Investments;