Is Publication of the Reputation Quotient (RQ) Sufficient to Move Stock Prices?

Research has shown that a firm's reputation influences the amount investors are willing to pay for that firm's securities. Therefore, securities of firms with a good reputation should be valued higher than firms with a poor reputation, ceteris paribus. In this study, we use event study methodology to assess whether the public disclosure of the Reputation Quotient (RQ^SM) list, an index of corporate reputation, induces a change in the security prices (shareholder returns) of the firms included on that list. The results show that disclosure of the RQ does not affect firm shareholder returns. We explore reasons for this finding, suggest possible explanations and offer implications