The article covers the problems of study of reputation as a fundamental factor of capital formation in modern conditions of activity of an enterprise. Following methods were used for the implementation of the research: system-structural and terminological analysis in order to systematize the conceptual apparatus of capitalization; scientific generalization – in the systematization of the diverse interpretations of «capitalization»; the cause-and-effect relationships to determine the reputation as a fundamental factor of capital investment in the enterprise and to provide details to the mechanisms that ensure capitalization growth in terms of reputation. The paper provides scientific arguments regarding the characterization of reputation as a linking element of intellectual and social capital that affects the quality and results of the capitalization processes. The article sets out specific mechanisms that ensure capitalization growth in terms of reputation and categorizes them as follows: securing (facilitating) the access to capital; reducing costs, primarily transaction and management ones, as a result of a company’s organizational and managerial innovations that simplify communication; increasing the productivity of assets; the effect of reducing competition in the market segments where the products of the enterprise are positioned; the effect of increasing competition among investors for the opportunity to invest in this enterprise; sustainable development with the reputation that is purposefully formed; the effect of «longevity» or life-cycle extension. The correlation between the results of capitalization and the reputation of the company in the context of the creation of Schumpeterian and reputational rent is proved. The feasibility of using the rate of return on invested (operating) capital as a formal measure of reputation in the context of capital formation at the enterprise is emphasized. Author’s position regarding the reasonably of management focus on quality business processes (the formation of trust as result of effective business processes) and the impact on the values of stakeholders (building trust as proof of relationship/identity of the company’s values and its corporate audiences), which are the powerful concepts in the growth of capitalization of the enterprises, is explained. 

capitalization, reputation, value, trust, cost