REPUTATIONAL CAPITAL OF COMPANIES AS A FUNDAMENTAL FACTOR OF INVESTMENT ATTRACTIVENESS

Abstract

This study focuses on investigating the role of companies' reputational capital in attracting investment resources. The article explores the historical concept of reputational capital, identifies key factors influencing reputation formation, and examines reputational mechanisms affecting investment decision-making. The paper emphasizes the study of mechanisms for forming and monetizing individual brands, analyzing effective tools and approaches for managing the reputation of business entities in the digital space. The scientific novelty of the research lies in the use of an original method for evaluating a company's reputational capital, as well as the integration of personal brand management processes of the company owner into the corporate business processes that determine the final financial results of investment projects. Additionally, the article presents calculations confirming the impact of the personal brand on sales and gross profit of a trading company, and conducts an analysis of key financial indicators of the project involving the personal brand of the owner. The methodology of calculation is presented through detailed financial modeling, which allows for assessing the contribution of reputational capital to the economic success of joint commercial activities. The study expands the understanding of factors determining a company's investment attractiveness, highlighting the role of individual characteristics of business leaders in shaping competitive advantages of organizations. Thus, the foundational concept of this scientific and applied article is the use of the author's methodology for evaluating reputational capital and analyzing investment attractiveness when a strategic investor enters an investment project with the business owner's reputational capital. This approach can also be applied in various investment transactions, such as mergers and acquisitions of companies. In practice, during mergers and acquisitions, it is not the brand of the product line that is evaluated, but the company's reputational capital. As a result of the conducted research, we have drawn the following conclusions: the reputational capital of companies, which includes the personal brand of the CEO, serves as a key factor determining the investment attractiveness of organizations. Leaders and owners of companies with a positive reputation have broader opportunities for attracting external financing, which allows them to minimize risks in capital markets and successfully compete under conditions of market uncertainty. Reputational capital becomes a foundational element in attracting investments, especially in the form of venture capital. The influence of behavioral economics on investment attractiveness is also significant, as stakeholders often make decisions based on irrational factors. In the modern world, investors are increasingly focused on individuals, and trust in the personal brand of the owner and their team reduces investment risks, significantly increasing the likelihood of attracting investments into the company.