Revisiting corporate reputation and firm performance link

Lee, Jooh; Roh, James Jungbae

doi:10.1108/14635771211258061

Cited by 125 publications

(135 citation statements)

References 39 publications

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“…This scholar claims that strong corporate reputation indicates high quality of services or products, which will improve corporate performance. Corporate reputation plays a role as a key strategic asset, which contributes to a competitive advantage and so brings about superior performance for the company, compared to its competitors (Roberts and Dowling, 2002;Iwu-Egwuonwu, 2011;Lee and Roh, 2012). The findings from Roberts and Dowling (2002) reveal that companies gaining superior performance enjoy a greater chance of maintaining higher performance over time if these companies also maintain their good reputation.…”

Section: Literature Reviewmentioning

confidence: 73%

“…The calculation of these seven attributes is based on indicators (items) and financial formulas as employed in previous studies (Francis et al, 2004;Gaio and Raposo, 2014;Latif et al, 2017). Based on Lee and Roh (2012) and Wang and Huynh (2014) this research measures corporate performance (COP) as accounting-based performance, which is evaluated on ROA (after-tax rate of return on total assets) and ROE (after-tax rate of return on shareholders" equity).…”

Section: Methodsmentioning

confidence: 99%

“…Gatzert (2015) offers a comprehensive study of empirical evidence concerning the link between corporate reputation and firm performance, while Li and Zhou (2015) explore the correlation between organizational reputation and enterprise development and document that, organizations with high reputation likely achieve superior performance. On the one hand, the reputation of a company is supposed by prior research (Roberts and Dowling, 2002;IwuEgwuonwu, 2011;Lee and Roh, 2012) as a vital driver leading to enhanced corporate performance; on the other hand, it is also proposed to affect the company"s quality of earnings statements, which in turn also creates competitive advantages and so helps the company gain superior performance (Lee et al, 2006;Tan, 2008;Luchs et al, 2009;Mahmud et al, 2009;Gaio and Raposo, 2011;Madhumathi and Ranganatham, 2011;Cao et al, 2012).…”

Section: Literature Reviewmentioning

confidence: 99%

“…He adds that corporate reputation is an intangible asset that is increasingly viewed as a causation of sustainable competitive advantages and so leads to superior performance. Moreover, Lee and Roh (2012) reckon that in spite of the perceptive relationship between corporate reputation and corporate performance, empirical research has reported inconclusive findings; hence they attempt to explore this association more comprehensively.…”

Section: Literature Reviewmentioning

confidence: 99%

“…In addition to being a driving force of financial reporting quality or earnings quality (Tan, 2008;Luchs et al, 2009;Cao et al, 2012) corporate reputation also puts an effect on corporate performance. Corporate performance is not only determined by earnings quality (Lee et al, 2006;Gaio and Raposo, 2011) but it is also driven by corporate reputation (Roberts and Dowling, 2002;Iwu-Egwuonwu, 2011;Lee and Roh, 2012). Corporate reputation is a crucial element of a company"s value and a major factor leading to enhanced performance.…”

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confidence: 99%

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Earnings Quality with Reputation and Performance

Huynh

2018

Asian Economic and Financial Review

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Article History JEL Classification:C51, G39, L25, M41.The quality of earnings is a potential driver of profit growth. However, it is regarded as a consequence of corporate reputation. Earnings quality is also suggested as a mediator intervening in the association between corporate reputation and corporate performance. This research employs the quantile regression to investigate the linkage between earnings quality and corporate performance. Then, it uses an indirect technique to analyze the mediating effect of earnings quality on the relationship between corporate reputation and corporate performance. The results provide statistical evidence on the comprehensive relationships among earnings quality, corporate reputation and corporate performance. The relationship between earnings quality and corporate performance is statistically supported in a more overall picture at different levels of corporate performance. Furthermore, this research offers statistical evidence on the mediating role of earnings quality in the impact of corporate reputation on corporate performance. The findings are expected to provide business managers with an insight into the complex links among earnings quality, corporate reputation and corporate performance, which will facilitate their decisions on the delivery level of good financial reports as well as on the maintenance of their corporate reputation to the extent that their company can obtain superior improved performance. Contribution/ Originality:This study contributes to the existing literature by providing statistical evidence on the mediating role of earnings quality in the effect of corporate reputation on corporate performance and it is the first to use the quantile regression to investigate the different effects of earnings quality on corporate performance. RESEARCH BACKGROUND AND PURPOSESeveral financial scandals, such as the major scandals of Enron and WorldCom, direct the attention of investors, researchers and also those concerned to the quality of financial information as well as the quality of reported earnings. Studies have begun to investigate the factors related to earnings quality released by publicly listed companies. Earnings quality is reported by previous researchers as being greatly essential to financial information users, practitioners and regulators as well as accounting researchers, because the earnings of companies are generally supposed to be an important information component offered in financial statements (Lev, 1989; Boonlert-U-Thai et al., 2006). If earnings quality is too low, users of financial statements can suffer negative effects, since poor earnings quality may enable investors to misallocate their money; therefore, they can obtain improper

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Section: Literature Reviewmentioning

confidence: 73%

Section: Methodsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

mentioning

confidence: 99%

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Earnings Quality with Reputation and Performance

Huynh

2018

Asian Economic and Financial Review

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ESG and firm performance: The effects of foreigners on board and export orientation

Wu,

Nguyen

2024

Bus Strat Dev

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This study investigates whether environmental, social, and governance (ESG) disclosures enhance industry‐adjusted firm performance and whether the presence of foreigners on board and export orientation affect this relationship. The Taiwan dataset from 2013 to 2020 indicates that ESG practices positively affect accounting‐ and market‐based performance (i.e., adjusted Tobin's Q and adjusted MTB ratio). However, ESG has no significant relationship with purely market‐based performance (i.e., adjusted Jensen Alpha and adjusted FF3). The results illustrate a significant joint effect of ESG with foreigners on board and export experience on accounting and market‐based performance. The findings provide deeper insight into the complex relationship between sustainability practices, ownership structures, and international businesses. Our findings remain consistent when using alternative estimation methods to account for endogeneity and selection bias.

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Effect of ethical leadership and corporate social responsibility on firm performance: A systematic review

Saha

Shashi

Cerchione

et al. 2019

Corp Soc Responsibility Env

217

126

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Academic and corporate interest in ethical leadership, corporate social responsibility (CSR), and firm performance has attracted a lot of attention in recent years. In fact, many research papers and journal special issues have been focused on these three domains. In this context, this paper conducts a systematic review on the concepts of ethical leadership and CSR and their impact on firm performance. 114 papers published over a period of 58 years (1958–2016) were selected and analyzed according to descriptive and content perspectives to propose a conceptual framework and define a future research agenda. In fact, the main results allow us to derive six main propositions representing possible areas of investigation to direct research on the topic. More in details, the body of literature highlights that financial factors are the main barriers affecting the adoption of CSR practices. On the contrary, internal and external environment was found to represent a critical success factor in the adoption of CSR practices. Finally, the results highlight that personal values have impact on ethical leadership that in turn has direct positive impact on CSR and direct and indirect impact on firm performance.

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Revisiting corporate reputation and firm performance link

Cited by 125 publications

References 39 publications

Earnings Quality with Reputation and Performance

Earnings Quality with Reputation and Performance

ESG and firm performance: The effects of foreigners on board and export orientation

Effect of ethical leadership and corporate social responsibility on firm performance: A systematic review

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