The Impact of Stakeholder Power on Corporate Reputation: A Cross-Country Corporate Governance Perspective

Abrahim Soleimani (), William D. Schneper () and William Newburry ()
Additional contact information
Abrahim Soleimani: Department of Management, Eastern Washington University, Spokane, Washington 99202
William D. Schneper: Department of Business, Organizations and Society, Franklin and Marshall College, Lancaster, Pennsylvania 17604
William Newburry: Department of Management and International Business, Florida International University, Miami, Florida 33199

Organization Science, 2014, vol. 25, issue 4, 991-1008

Abstract: Corporate reputation has roots in national beliefs about the role of the business corporation in society; these beliefs are constructed in accordance with the preferences of powerful stakeholders. Building on a stakeholder-power approach to corporate governance, we investigate whether differences in the legal rights and protections of shareholders, creditors, and workers across countries affect the general public’s reputation assessments of business corporations. Using a sample of 593 of the largest publicly traded companies in the world from 32 countries during 2007 to 2011, we find that in societies where shareholders enjoy a high degree of legal rights, the impact of stock market returns on corporate reputation becomes more positive. Likewise, the negative relationship between earnings volatility and reputation becomes greater when creditor rights are stronger. Contrary to expectations, we found no evidence of an interaction effect between labor rights and corporate social performance on corporate reputation.

Keywords: reputation; corporate governance; stakeholders; institutions (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

Downloads: (external link)
http://dx.doi.org/10.1287/orsc.2013.0889 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ororsc:v:25:y:2014:i:4:p:991-1008

Access Statistics for this article

More articles in Organization Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().