The board of directors and corporate reputation: an empirical analysis

Abstract

Purpose The purpose of this paper is to test the association between board of director characteristics and corporate reputation. Design/methodology/approach Logistic and multivariate regressions are performed to analyse whether the board of director characteristics are associated with the level of corporate reputation. The sample is composed of listed companies in the Madrid Stock Exchange (Índice General de la Bolsa de Madrid) at least once during the period 2004-2010. Corporate governance data were manually extracted from governance reports released by Spanish companies. The data for the design of a corporate reputation measure were obtained from the Monitor Español de Reputación Corporativa (MERCO) institute web site. Findings Results from the empirical analysis show that Spanish companies that appear high up in terms of ranking in the reputation index provided by MERCO tend to have a higher percentage of independent directors as well as more female directors on their board. Firm size and the image of the president of a firm are also linked to corporate reputation. Originality/value The results have direct implications for the management of corporate governance mechanisms by shareholders who should take into account their role in the creation and maintenance of corporate reputation.

Effect of Board Gender, Political Connection, Military Experience, and Board Activity Toward Company Reputation

“…Because corporate governance and corporate value have things to do with the company's reputation. The existence of woman's board of commissioners in the board of commissioners is also expected to improve the company's reputation in accordance with research conducted by Bravo et al (2015). It explains that the more women directors in a company, the company tends to have a high reputation.…”

“…In addition, with the existence of a woman's president director who tends to risk averse and protect investors in dealing with problems, the women president director are expected to reduce the problems of company agencies while increasing the company's reputation itself. This is supported by research conducted by Bravo et al (2015) which shows that companies that have a high reputation ranking index tend to have fwoman directors with a high.…”

“…Women directors are expected to increase the independence of the board because women can ask questions and provide new insights that the board of directors will not have and the company's reputation from directors with a more traditional background. Besides, women provide important resources that can enhance a company's competitive advantage and diversity increase creativity and innovation (Bravo et al, 2015).…”

“…The importance of this research are as follow; first, this research conducts research development of Brammer et al (2009); Bravo et al (2015); Kaur & Singh (2017) with political connection variables as independent variables that will be researched. This is because in some studies, there have included elements or aspects of political connections that can affect GCG and corporate value.…”

Unravelling the Fuzzy Effect of Economic, Social and Environmental Sustainability on the Corporate Reputation of Public-Sector Organizations: A Case Study of Pakistan

“…In the same way, credibility and trust are the factors which must be managed to maintain an organizations reputation [38]. Alternately, researchers investigated the effect on reputation of engagement in social media activities, responsible supply chain practices and firm size and the image of the president of a firm and concluded that these factors can enhance the reputation of organizations [39][40][41]. In parallel, the literature also offers evidence on the role of corporate social responsibility in developing a positive corporate reputation [15,35,42].…”