Do Corporate Governance Mechanisms Matter to the Reputation of Financial Firms? Evidence of Emerging Markets

The primary aim of this study is to provide a comprehensive measure of corporate reputation and examine the impact of corporate governance on the reputation of listed financial firms in the countries of MENA region. Using a sample of 96 financial companies listed on the stock exchanges of four count...

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Main Authors: Ibrahim O.A Eriqat, Muhammad Tahir, Abdul Hadi Zulkafli
Format: Article
Language:English
Published: Taylor & Francis Group 2023-12-01
Series:Cogent Business & Management
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23311975.2023.2181187
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author Ibrahim O.A Eriqat
Muhammad Tahir
Abdul Hadi Zulkafli
author_facet Ibrahim O.A Eriqat
Muhammad Tahir
Abdul Hadi Zulkafli
author_sort Ibrahim O.A Eriqat
collection DOAJ
description The primary aim of this study is to provide a comprehensive measure of corporate reputation and examine the impact of corporate governance on the reputation of listed financial firms in the countries of MENA region. Using a sample of 96 financial companies listed on the stock exchanges of four countries in the MENA region: Jordan, Palestine, Qatar, and Kuwait over a period of five years (2016–2020), the study developed a quantitative index of a multidimensional corporate reputation through the use of principal component analysis (PCA) techniques. The study applies the dynamic panel system Generalized Method of Moments (GMM) to estimate the dynamic corporate reputation model. The study finds that audit committee independence improves corporate reputation. Furthermore, findings show that ownership concentration negatively affects corporate reputation. This study contributes to filling the research gap on corporate reputation within the MENA region. Furthermore, the study findings provide interesting insights for policy makers, managers, and other stakeholders about what can determine a company’s reputation in the case of developing countries.
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spelling doaj-art-2a12b47b1cf44c71a1820bf1a0067c0e2025-08-20T02:09:38ZengTaylor & Francis GroupCogent Business & Management2331-19752023-12-0110110.1080/23311975.2023.2181187Do Corporate Governance Mechanisms Matter to the Reputation of Financial Firms? Evidence of Emerging MarketsIbrahim O.A Eriqat0Muhammad Tahir1Abdul Hadi Zulkafli2Finance and Islamic Finance Section, School of Management, Universiti Sains Malaysia, George Town, MalaysiaDepartment of Management Sciences, University of Turbat, Balochistan, PakistanFinance and Islamic Finance Section, School of Management, Universiti Sains Malaysia, George Town, MalaysiaThe primary aim of this study is to provide a comprehensive measure of corporate reputation and examine the impact of corporate governance on the reputation of listed financial firms in the countries of MENA region. Using a sample of 96 financial companies listed on the stock exchanges of four countries in the MENA region: Jordan, Palestine, Qatar, and Kuwait over a period of five years (2016–2020), the study developed a quantitative index of a multidimensional corporate reputation through the use of principal component analysis (PCA) techniques. The study applies the dynamic panel system Generalized Method of Moments (GMM) to estimate the dynamic corporate reputation model. The study finds that audit committee independence improves corporate reputation. Furthermore, findings show that ownership concentration negatively affects corporate reputation. This study contributes to filling the research gap on corporate reputation within the MENA region. Furthermore, the study findings provide interesting insights for policy makers, managers, and other stakeholders about what can determine a company’s reputation in the case of developing countries.https://www.tandfonline.com/doi/10.1080/23311975.2023.2181187MENAcorporate governancecorporate reputationaudit committee independenceownership concentrationN25
spellingShingle Ibrahim O.A Eriqat
Muhammad Tahir
Abdul Hadi Zulkafli
Do Corporate Governance Mechanisms Matter to the Reputation of Financial Firms? Evidence of Emerging Markets
Cogent Business & Management
MENA
corporate governance
corporate reputation
audit committee independence
ownership concentration
N25
title Do Corporate Governance Mechanisms Matter to the Reputation of Financial Firms? Evidence of Emerging Markets
title_full Do Corporate Governance Mechanisms Matter to the Reputation of Financial Firms? Evidence of Emerging Markets
title_fullStr Do Corporate Governance Mechanisms Matter to the Reputation of Financial Firms? Evidence of Emerging Markets
title_full_unstemmed Do Corporate Governance Mechanisms Matter to the Reputation of Financial Firms? Evidence of Emerging Markets
title_short Do Corporate Governance Mechanisms Matter to the Reputation of Financial Firms? Evidence of Emerging Markets
title_sort do corporate governance mechanisms matter to the reputation of financial firms evidence of emerging markets
topic MENA
corporate governance
corporate reputation
audit committee independence
ownership concentration
N25
url https://www.tandfonline.com/doi/10.1080/23311975.2023.2181187
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AT muhammadtahir docorporategovernancemechanismsmattertothereputationoffinancialfirmsevidenceofemergingmarkets
AT abdulhadizulkafli docorporategovernancemechanismsmattertothereputationoffinancialfirmsevidenceofemergingmarkets