Corporate Reputation and Financial Performance of Life Insurers

Chen, Tsai-Jyh

doi:10.1057/gpp.2016.8

Cited by 9 publications

(8 citation statements)

References 20 publications

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“…Despite a clear theoretical link between corporate reputation and financial performance, the literature reveals mixed empirical evidences. Some studies report positive impacts of corporate reputation on subsequent financial performance (Deephouse, 2000; Roberts and Dowling, 2002; Eberl and Schwaiger, 2005; Anderson and Smith, 2006; Alvarado-Vargas, 2013; Hall and Lee, 2014; Raithel and Schwaiger, 2015; Chen, 2016; Castilla-Polo et al , 2018; Kaur and Singh, 2018; Santiago et al , 2019). Meanwhile, others find negative association between corporate reputation and financial performance (Liu et al , 2014; Hassan et al , 2015; Phillips et al , 2015).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…The literature revealed mixed empirical evidences regarding the impacts of reputation on firm performance. While there is a substantial amount of research which affirms the positive impacts of corporate reputation on subsequent financial performance (Deephouse, 2000; Roberts and Dowling, 2002; Eberl and Schwaiger, 2005; Anderson and Smith, 2006; Alvarado-Vargas, 2013; Hall and Lee, 2014; Raithel and Schwaiger, 2015; Chen, 2016; Castilla-Polo et al , 2018; Kaur and Singh, 2018; Santiago et al , 2019), the inverse impacts are also well-documented (Liu et al , 2014; Hassan et al , 2015; Phillips et al , 2015). Meanwhile, others found no significant reputation-performance link (Rose and Thomsen, 2004; Inglis et al , 2006; Tischer and Hildebrandt, 2014).…”

Section: Introductionmentioning

confidence: 99%

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Media reputation: a source of banks' financial performance

Thang

Hoang

Anh

2020

IJBM

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PurposeBased on the resource-based view (RBV) and the signaling theory, this paper examines the effect of media reputation on financial performance as well as the moderating role of bank characteristics (risk management and financial capacities) in this relationship, using Vietnamese commercial bank data for the period 2007–2018.Design/methodology/approachWe rely on the agenda-setting theory to measure the media reputation of banks. Return on average equity (ROE) is used as a proxy of financial performance. We regress financial performance on media reputation with fixed effects to control unobserved variables. In addition, the instrumental variable (IV) method is applied to deal with the endogeneity problem. We use the change in bank logo as an IV for media reputation.FindingsWe find that media reputation has a positive effect on financial performance. This effect becomes prominent for large banks, listed banks or banks that demonstrate good risk management capacities, and is particularly strong when we control for endogeneity bias. The effect of media reputation on financial performance is transmitted through the non-performing loan (NPL) channel.Research limitations/implicationsThe research findings further endorse the positive impact of media reputation on financial performance in the low-quality institutional settings. Moreover, these findings expand the existing knowledge regarding the relationship between media reputation and financial performance by affirming two strategies which could be used to leverage the contribution of media reputation including improving banks' risk management capacities and raising financial capital.Originality/valueThis is the first known paper to examine the effect of media reputation on financial performance in commercial banks in an underdeveloped institutional setting while exploring the moderators in this relationship. This study, therefore, provides insightful implications for different bank segments in managing NPL and taking advantage of media reputation as a potential resource of financial performance.

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Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Media reputation: a source of banks' financial performance

Thang

Hoang

Anh

2020

IJBM

View full text Add to dashboard Cite

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“…Moreover, corporate reputation has a significant positive impact on profit margin, helps to open new businesses and to reach higher return on investment. Additionally, a stable reputation defines the company's profitability in terms of the market competition [Chen, 2016].…”

Section: Discussionmentioning

confidence: 99%

Regional Differentiation of Russian Insurance Market and Consumer Trust

Ларина¹,

Moryzhenkova²,

Ryabova³

2022

Reg. ekon. Yug Ross.

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The results of the study conducted by the authors show a low level of insurance culture in Moscow, a high level of fraud by unscrupulous market participants, imposition of insurance products on customers, a low level of profitability on accumulative insurance and investment insurance programs, which leads to a low level of consumer trust in insurance products. These problems mentioned above allow us to talk about negative image of insurance companies and high reputational risks. At the same time, existing studies prove a stable relationship between reputation and image management and gaining client’s trust, which as a result, affects the profitability of insurers. Regional features cause significant differences in the degree of development of insurance market in the Russian Federation. In this regard, it seems relevant to develop a comprehensive indicator that could characterize dynamics of shaping a positive image of the insurance industry, as well as its comparative intercountry and interregional position. The authors propose a methodology for the calculation of the index aimed at image assessment of the insurance industry, which takes into account dynamics of voluntary insurance market, competition, market concentration, consumer loyalty index, as well as level of digitalization of the insurance market in the region. The results of the assessment of insurance market index of the Russian Federation for 2020 made it possible to conclude that image of the insurance industry in the eyes of consumers is not high. Gradual development of positive image of insurance market is possible through focused campaigns aimed at youth, stimulation of the use of digital channels and services, financial literacy improvement and financial culture development.

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“…Fombrun (1996) defines reputation as stakeholders' assessment of the firm's performance. Firm reputation is also an important aspect of reflecting on a firm's capabilities and maintaining a competitive advantage in today's global market (Kwon & Lee, 2019;Chen, 2016). According to Velez-Ocampo and Gonzalez-Perez (2019), a firm reputation makes the firm is being recognised and receive positive perceptions from others.…”

Section: Background Of Studymentioning

confidence: 99%

Exploring Stakeholder Salience Perspective of Firm Reputation: Evidence From Malaysia

Fuzi¹,

Hassan²,

Jaffar³

et al. 2022

IJARBSS

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This paper aims to explore the components of a firm reputation based on public information disclosure and its relationship with the stakeholder salience model. The firm reputation components are analysed using content analysis of the firm's annual report. The study collects data on the firm reputation components from 200 annual reports of Malaysian public listed companies over a period of 4 years (2016)(2017)(2018)(2019). The results of the study found that there are seven (7) components that can be used to reflect on the firm reputational aspects as disclosed in the firm's annual report. The components include performance, product and service quality, innovation, workplace, governance, citizenship/CSR, and leadership. The findings also reveal three highest components which are product and service quality, performance, and workplace, are supported by the stakeholder salience theory. Our analysis provides evidence that power, legitimacy, and urgency become crucial attributes in determining the key stakeholders of the firms (customers, employees, and shareholders) when the firms have different types of stakeholders. Operatively, our evidence can help regulators, investors and researchers to better understand firm reputational components as per information disclosed by the firms, especially for the firms operating in developing and emerging markets. Further, this study is among the earliest that provide the interrelation between firm reputational dimension and stakeholder salience.

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Corporate Reputation and Financial Performance of Life Insurers

Cited by 9 publications

References 20 publications

Media reputation: a source of banks' financial performance

Media reputation: a source of banks' financial performance

Regional Differentiation of Russian Insurance Market and Consumer Trust

Exploring Stakeholder Salience Perspective of Firm Reputation: Evidence From Malaysia

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