The reputation of companies listed on Nasdaq Helsinki is on the decline – KONE, Ponsse, and Gofore are the most reputable
According to a study by Reputation and Trust Analytics, family-owned companies listed on Nasdaq Helsinki rank highest among the most reputable companies on the exchange, receiving higher reputation ratings from retail investors than other listed companies.
Reputation and Trust Analytics surveyed retail investors’ views on the reputation of 79 of Nasdaq Helsinki’s largest listed companies: KONE, Ponsse, and Gofore were rated as the most reputable companies. KONE and Ponsse ranked first and second, respectively, last year. Gofore, which was ranked third, has moved up seven places since last year.
“Listed family-owned companies fared well in retail investors’ reputation ratings. It is said that the survival rate for a family business is 25 years. This is what retail investors value—stability builds trust,” says Sari Lounasmeri, CEO of the Finnish Foundation for Share Promotion.
“The reputation of the family-owned elevator company KONE is so solid that even the challenging business environment has not affected its reputation rating. Another family-owned company, Ponsse, received the highest ESG score in the study. Gofore, which was ranked among the top three in 2017, also has a strong founder stake.”
Fortum’s reputation saw the biggest decline of the year – Nokian Tyres’ reputation saw the biggest increase
The results of the Reputation and Trust Analytics study show that the reputation of companies listed on Nasdaq Helsinki is good on average, but has declined for the second consecutive year. The average reputation score for listed companies is 3.53 this year, 3.56 last year, and 3.60 the year before.
The largest single decline in this year’s reputation survey (-0.82) was recorded by the state-owned company Fortum. The company’s reputation fell for the second consecutive year, placing it at the bottom of the list with a score of 2.50. Retail investors’ perceptions of Fortum’s management declined particularly sharply.
Nokian Tyres, which was impacted by the Russia-Ukraine war, regained the trust of investors. Nokian Tyres improved its reputation by 0.30 points compared to last year, reaching a reputation score of 3.38 this year. However, the company’s reputation still lags behind what it was two years ago, when it was ranked among companies with a good reputation (score ≥ 3.50).
In general, retail investors’ perceptions of the financial situation of companies listed on Nasdaq Helsinki and the competence of their management have deteriorated the most.
“Changes in interest rate markets and inflation, as well as global crises ranging from the pandemic to the Russia-Ukraine war, affect almost all companies, impacting market valuations and reputations, particularly in Finland. However, management has a key role to play in setting a new direction and vision,” says Harri Leinikka, CEO of Reputation and Trust Analytics, the company that conducted the survey.
“In contrast to other aspects of reputation, the perception of listed companies’ responsibility has improved slightly. This is a significant achievement, given that, at the same time, expectations and demands regarding responsibility have increased,” Leinikka continues.
About our research
The Reputation & Trust 2023 study of companies listed on Nasdaq Helsinki examined the reputation of 79 companies among Finnish retail investors. The companies’ reputations were measured using the Reputation&Trust research model, which assesses reputation based on eight factors: Governance, Financial Performance, Leadership, Innovations, Dialogue, Products & Services, Workplace, and Responsibility.
The survey targeted Finnish retail investors aged 15 and older nationwide. The survey data was collected via an electronic questionnaire from May 11 to June 26, 2023, in cooperation with Suomen Osakesäästäjät and the Finnish Foundation for Share Promotion.
A total of 7,757 individual retail investors participated in the survey, providing a total of 18,837 company valuations. The statistical margin of error for the entire dataset is at mostapproximately 1.11 percentage points . For individual companies, the margin of error for the reputation score ranges from 0.04 to 0.06 units, depending on the standard deviation of the validated company-specific estimates.
