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Corporate Reputation: Do Board Characteristics Matter? Indian Evidence

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  • Amanpreet Kaur
  • Balwinder Singh

Abstract

Drawing inference from signalling theory, the study attempts to examine the relation between corporate governance and corporate reputation in the Indian context. There is hardly any study directly deciphering the impact of board attributes (like size and ownership pattern) on corporate reputation (taking market capitalisation as proxy) in India. Based on a sample of 403 Indian companies listed on the Bombay Stock Exchange (BSE), the results of panel regression indicate that board size and ownership pattern influence the assessment of a company’s reputation, which is in line with the findings of previous research on this issue in developed nations. It is also found that firms who allow access to institutional investors and those with larger boards exhibit better reputation. Overall, the findings of the current study support the proposition that board characteristics influence the formation of firm reputation by the business community. The study bears significant implications for corporate managers that along with improving financial performance, social performance and media visibility, they should give significant weightage to good governance and management quality (reflected through board attributes) to enhance firm reputation and gain competitive advantage over others.

Suggested Citation

  • Amanpreet Kaur & Balwinder Singh, 2018. "Corporate Reputation: Do Board Characteristics Matter? Indian Evidence," Indian Journal of Corporate Governance, , vol. 11(2), pages 122-134, December.
    • Handle: RePEc:sae:ijcgvn:v:11:y:2018:i:2:p:122-134
    DOI: 10.1177/0974686218797758
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    References listed on IDEAS

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    1. Kofi Mintah Oware & Harshitha Moulya & Thathaiah Mallikarjunappa, 2024. "Corporate social responsibility assurance, board characteristics and social performance disclosure. Evidence of listed firms in India," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(2), pages 1707-1721, April.
    2. Faozi A. Almaqtari & Hamood Mohd. Al-Hattami & Khalid M. E. Al-Nuzaili & Mohammed A. Al-Bukhrani, 2020. "Corporate governance in India: A systematic review and synthesis for future research," Cogent Business & Management, Taylor & Francis Journals, vol. 7(1), pages 1803579-180, January.

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