Keywords
rankings, status, reputation, Fortune 500, regression discontinuity
Abstract
Conventional wisdom suggests that being included in an exclusive ranking leads to positive external evaluations. However, Lewis and Carlos (2023) found that firms situated near the threshold for inclusion on the 100 Best Corporate Citizen ranking were devalued by investors. To assess the generalizability of this surprising finding, we quasi-replicate and extend this finding by applying the same regression discontinuity design to the Fortune 500 ranking. We find corroborating evidence: firms near the bottom of the Fortune 500 receive lower external evaluations, not only from investors but also from industry peers. Our findings therefore quasi-replicate and extend Lewis and Carlos’ (2023) results by showing that negative reactions to marginal ranking are not limited to investors or to a single ranking context.
BYU ScholarsArchive Citation
Carlos, W. Chad; Dewan, Yasir; Lewis, Ben W.; Reschke, Brian P.; and St. Clair, S. Isaac, "The Risk of Marginal Ranking: A Replication and Extension of Lewis & Carlos (2023)" (2025). Faculty Publications. 7645.
https://scholarsarchive.byu.edu/facpub/7645
Document Type
Working Paper
Publication Date
2025-05-31
Language
English
College
Marriott School of Business
Department
Management
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