Corporate Governance and Corporate Reputation: The Role of Environmental and Social Reporting Quality

Mohamad Iruwan Ghuslan, Romlah Jaffar, Norman Mohd Saleh and Mohd Hasimi Yaacob
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Mohamad Iruwan Ghuslan: Faculty of Business, Multimedia University, Bukit Beruang, Melaka 75450, Malaysia
Romlah Jaffar: Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi 43600, Selangor, Malaysia
Norman Mohd Saleh: Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi 43600, Selangor, Malaysia
Mohd Hasimi Yaacob: Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi 43600, Selangor, Malaysia

Sustainability, 2021, vol. 13, issue 18, 1-24

Abstract: Corporate reputation is companies’ most valuable asset as it can position them to gain competitive advantages that lead to sustainable performance. Therefore, understanding the factors that influence corporate reputation is vital for a company’s survival. The study objectives were to investigate the effects of corporate governance and the quality of environmental and social reporting on corporate reputation. Additionally, this study examined the role of environmental and social reporting quality on the relationship between these two variables. This study used secondary data collected from multiple sources such as the Thomson Data Stream database and annual reports of publicly listed Malaysian companies between 2017 and 2018. The results showed that corporate governance effectiveness and environmental and social reporting quality positively influence corporate reputation. Additionally, the quality of environmental and social reporting mediates the relationship between corporate governance and corporate reputation. This study bridges research gaps by providing evidence for the impact of effective corporate governance, specifically board diversity, on corporate reputation in Malaysia. The findings can help companies to establish criteria and qualifications for the appointment of new board members. The members must have the right combination of skills, knowledge, experience and independent elements that enable them to make decisions to meet companies’ objectives.

Keywords: corporate reputation; corporate governance; environmental and social reporting quality; board diversity (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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