Investigating the Effect of Corporate Governance Mechanisms on Company Reputation

Kazemioloum, Mahdi; Khotanlou, Mohsen; Mehrabi Tizro, Saeid

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year 17, Issue 65 (2025)

fa 2025, 17(65): 56-40

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Investigating the Effect of Corporate Governance Mechanisms on Company Reputation

Mahdi Kazemioloum¹

, Mohsen Khotanlou ^*¹

, Saeid Mehrabi Tizro²

1- Department of Accounting, Faculty of Economic and Social Science, Bu-Ali Sina University, Hamedan, Iran.
2- Department of Accounting, Alvand Institute of Higher Education, Hamedan, Iran.

Abstract: (15 Views)

This research aims to investigate the impact of specific corporate governance mechanisms (board independence, audit committee size and independence, ownership concentration, and managerial ownership) on corporate reputation. To test the hypotheses, a sample of 148 companies listed on the Tehran Stock Exchange was selected over 10 years from 2014 to 2023 (1480 firm-years). Multiple regression analysis with the Generalized Method of Moments estimation and Logistic regression with the Logit estimation technique were used to test the hypotheses. The research findings show that using a principal component analysis approach to measure corporate reputation, there is a direct and significant relationship between board independence, audit committee independence, managerial ownership, and corporate reputation. The relationship between ownership concentration and audit committee size with corporate reputation is not significant in this case. Furthermore, the results, using a virtual definition of corporate reputation based on the Industrial Management Institute's ranking, showed a direct and significant relationship between board independence, audit committee size, and independence, and managerial ownership with corporate reputation, while the relationship between managerial ownership and corporate reputation is not significant, as in the first case. Overall, the results suggest that companies can increase their reputation by employing more non-executive members in the board structure, using more independent members in the audit committee, and increasing the share ownership of managers. The findings of this research highlight the importance of the role of corporate governance components in improving corporate reputation.

Article number: 3

Keywords: Board Independence, Ownership Concentration, Corporate Reputation, Audit Committee.

Full-Text [PDF 1915 kb] (19 Downloads)

Type of Study: Research | Subject: Special

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Kazemioloum M, Khotanlou M, Mehrabi Tizro S. Investigating the Effect of Corporate Governance Mechanisms on Company Reputation. fa 2025; 17 (65) : 3
URL: http://qfaj.mobarakeh.iau.ir/article-1-2843-en.html

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