Ownership structure and corporate reputation in Malaysia / Nur Nadhirah Syahirah Zainul Abidin
Corporate reputation research has grown significantly in recent years, highlighting a strong link between reputation and performance. However, measuring reputation solely by performance is insufficient due to the complexity of the concept. More research is needed to identify precise variables for as...
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| Format: | Thesis |
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2024
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| Online Access: | http://studentsrepo.um.edu.my/15385/2/Nadhirah_Syahirah.pdf http://studentsrepo.um.edu.my/15385/1/Nur_Nadhirah_Syahirah.pdf http://studentsrepo.um.edu.my/15385/ |
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| Summary: | Corporate reputation research has grown significantly in recent years, highlighting a strong link between reputation and performance. However, measuring reputation solely by performance is insufficient due to the complexity of the concept. More research is needed to identify precise variables for assessing corporate reputation. Previous studies in Spain explored the relationship between ownership structure and corporate reputation, finding that family ownership negatively impacts reputation. This supports agency theory, which suggests that there is always a conflict of interest between majority and minority ownership which can harm corporate reputation. Unlike the diverse ownership in Spain, Malaysia's ownership structure is more concentrated, presenting challenges for applying these findings directly. This study aims to understand how corporate ownership structure affects corporate reputation in Malaysia by investigating the impact of family, institutional, foreign, and concentrated ownership on corporate reputation, controlling for firm age, board size, and firm size. Using 519 observations from 173 non-financial companies listed on Bursa Malaysia between 2017 and 2019, the study finds that none of the variables show a significant relationship with corporate reputation. The study's results offer practical strategies for managing corporate reputation, guiding investors, policymakers, and stakeholders in their decision-making processes, and enriching academic understanding of corporate reputation, governance, and ownership relations. These findings encourage investors to evaluate companies using broader criteria and help policymakers design more comprehensive regulatory frameworks. Additionally, the study adds nuance to agency theory by challenging simplistic assumptions about the impact of ownership on reputation. Academically, it promotes the development of more complex models and interdisciplinary research to better understand the factors driving corporate reputation. Future research should include a broader range of variables to capture changes over time. Comparative studies across different regions or industries and incorporating qualitative methods like interviews can provide deeper insights. Additionally, focusing n governance practices and shareholder perspectives, as well as using advanced analytical techniques, will enhance the understanding of factors driving corporate reputation.
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