The Gestalt of Corporate Reputation and its Impact on Shareholder Value: Anna Karenina vs. The Great Gatsby

Abstract We examine how the gestalt of corporate reputation, defined as the dispersion of strengths and weaknesses across reputational dimensions, affects shareholder value. While prior research takes an aggregated view, we contrast two gestalts: a balanced one with consistently high ratings across dimensions (Anna Karenina principle) and an imbalanced one with exceptional ratings in some areas but lower in others (Great Gatsby principle). Our stock portfolio analysis suggests that firms following the Great Gatsby principle outperform, while no evidence supports the Anna Karenina principle. Additional analysis underscores the importance of organizational culture in driving performance. The findings show that exceptional strength in some dimensions can offset weaknesses in others. Our study guides firms in allocating resources across reputational dimensions and informs fund managers on stock selection.