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Since it is not clear whether the reputation of a corporation creates profits for stockholders or greater stockholder profits create the reputation, the paper attempts to answer the question of how corporate reputation influences value creation factors and increases discounted cash flows. The statements presented in this paper should be treated as conscious speculation more than as a definitive study. The theses are not based on empirical research but rather on the authors’ reading of the literature on product and corporate brands and corporate reputation.
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