Being Rich presents Reputation Risk
Totally fascinating to me that China releases a list of its wealthiest citizens, similar to the Forbes 400. The list, Hurun Report, had some amazing facts worth sharing and which I learned about reading The Economist. The leading source of wealth came from individuals making their living off of manufacturing and not real estate as it was one year ago. There were also interesting correlations between wealth and zodiac signs with those born in the year of the Rabbit outranking those born in the year of the Snake (2nd) and year of the Dragon (3rd). At the bottom of China’s wealthiest 1000 individuals are those born in the year of the Ox. The reputation of the Ox is in danger.
But most interesting was the downfall of some of those who make the Hurun or the Forbes Wealthiest people list. There is greater scrutiny from tax collectors, regulators and the public. There is even a book titled “The Curse of Forbes” which describes the problems that surface when being lauded as one of the nation’s richest. In a report that the article cites, researchers found that those companies headed by entrepreneurs who make the list find that their market value declines sharply three years afterwards. Clearly, being on a rich list in China brings the bad with the good and puts reputations in jeopardy. The Economist title was “To Get Rich Is Not Always Glorious.” An apt headline.