Branding Good Corporate Governance: A Pathway to Strengthen Investors’ Perception and Brand Equity

Abstract

Corporate governance has become a crucial issue in both the business and academic world as a result of worldwide financial scandals and lack of trust in corporate practices. There is no doubt that in order to thrive and attain growth in the market, a company must earn the trust of its stakeholders by consistently delivering on its commitments. Directors of the companies thus comprehend the importance of upfront communication with relevant stakeholders to increase their confidence. The authors of this article argue that practicing good corporate governance is not enough in this highly competitive market place; corporate leaders need to market their good corporate governance practices in order to make the company more attractive to investors. This article also contends that the strength of corporate governance relies wholly upon the extent to which it is communicated simply, effectively and unceasingly to its stakeholders. The main objective of this study, therefore, is to explore the importance of branding good corporate governance in order to increase corporate brand equity, attract investors, and capture market share. A structured questionnaire comprising three sections and a total of 34 questions was prepared and surveyed by the authors among respondents residing in Bangladesh and who also have an academic and corporate background, to investigate the potential impact of branding good corporate governance in the market place. High mean values for individual questions and overall section depict that communicating and branding good corporate governance to the stakeholders will not only boost the investors' confidence but also increase the corporate brand equity, yielding both profitable and sustainable business environment.

Transfer Pricing Aggressiveness, Thin Capitalization, Political Connection, Tax Avoidance: Does Corporate Governance Have A Role in Indonesia?

“…The focus of corporate governance on transparency, a guarantee of shareholder rights, and communication is managers' effort at multinational companies to show that all-important information has been disclosed to stakeholders. Companies that communicate and promote good corporate governance will attract stakeholders' trust and generate sustainable business activities (Islam, 2019). Multinational companies might promote good corporate governance to create bias in stakeholder assessment of companies based solely on existing information.…”