Research suggests that assuming that a company's message is grounded in reality, a positive company reputation
A) has no effect on market capitalization.
B) can enhance the company's market capitalization.
C) will usually lower the company's market capitalization.
D) keeps the company's market capitalization at book value.

Question

Quizplus · Accepted Answer

A positive company reputation can enhance investor confidence and increase demand for the company's stock, leading to an increase in market capitalization.

Research Suggests That Assuming That a Company's Message Is Grounded