Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 32759
Branding Good Corporate Governance: A Pathway to Strengthen Investors’ Perception and Brand Equity

Authors: Azaz Zaman, Imtiaz Uddin Chowdhury, Mohammad Shariful Islam

Abstract:

Corporate governance has become a crucial issue in both the business and academic world as a result of world-wide financial scandals and lack of trust in corporate practices. There is no doubt that in order to thrive and attain growth in the market, a company must earn the trust of its stakeholders by consistently delivering on its commitments. Directors of the companies thus comprehend the importance of upfront communication with relevant stakeholders to increase their confidence. The authors of this article argue that practicing good corporate governance is not enough in this highly competitive market place; corporate leaders need to market their good corporate governance practices in order to make the company more attractive to investors. This article also contends that the strength of corporate governance relies wholly upon the extent to which it is communicated simply, effectively and unceasingly to its stakeholders. The main objective of this study, therefore, is to explore the importance of branding good corporate governance in order to increase corporate brand equity, attract investors, and capture market share. A structured questionnaire comprising three sections and a total of 34 questions was prepared and surveyed by the authors among respondents residing in Bangladesh and who also have an academic and corporate background, to investigate the potential impact of branding good corporate governance in the market place. High mean values for individual questions and overall section depict that communicating and branding good corporate governance to the stakeholders will not only boost the investors’ confidence but also increase the corporate brand equity, yielding both profitable and sustainable business environment.

Keywords: Brand equity, investors’ preference, good corporate governance, sustainable business environment.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.3298821

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1175

References:


[1] M. Y. Al-Qudah, and L. Al Rubaiee. The effect of corporate governance on customer relationship quality and marketing performance. Middle East University, 2012.
[2] M. Ammann, D. Oesch, and M. M. Schmid. "Corporate governance and firm value: International evidence." Vol. 18, no. 1. pp.36-55, 2011.
[3] H. Ashbaugh-Skaife, D. W. Collins, and R. LaFond. "The effects of corporate governance on firms’ credit ratings." Vol. 42, no. 1-2. pp.203-43, 2006.
[4] A. Banerjee, S. Gokarn, M. Pattanayak, and S. K. Sinha. "Corporate governance and market value: Preliminary evidence from Indian companies." Vol. 12, no. 2. pp.42-77, 2009.
[5] R. Bauer, B. Frijns, R. Otten, and A. Tourani-Rad. "The impact of corporate governance on corporate performance: Evidence from Japan." Vol. 16, no. 3. pp.236-51, 2008.
[6] L. Bebchuk, A. Cohen, and A. Ferrell. "What matters in corporate governance?". Vol. 22, no. 2. pp.783-827, 2008.
[7] S. Bhagat, and B. Bolton. "Corporate governance and firm performance." Vol. 14, no. 3. pp.257-73, 2008.
[8] N. M. Bocken, S. W. Short, P. Rana, and S. Evans. "A literature and practice review to develop sustainable business model archetypes." Vol. 65. pp.42-56, 2014.
[9] L. D. Brown, and M. L. Caylor. "Corporate governance and firm valuation." Vol. 25, no. 4. pp.409-34, 2006.
[10] L. Burke, and J. M. Logsdon. "How corporate social responsibility pays off." Vol. 29, no. 4. pp.495-502, 1996.
[11] C. J. Cobb-Walgren, C. A. Ruble, and N. Donthu. "Brand equity, brand preference, and purchase intent." Vol. 24, no. 3. pp.25-40, 1995.
[12] J. E. Core, W. R. Guay, and T. O. Rusticus. "Does weak governance cause weak stock returns? An examination of firm operating performance and investors' expectations." Vol. 61, no. 2. pp.655-87, 2006.
[13] S. S. Cowen, L. B. Ferreri, and L. D. Parker. "The impact of corporate characteristics on social responsibility disclosure: A typology and frequency-based analysis." Vol. 12, no. 2. pp.111-22, 1987.
[14] M. Cremers, and A. Ferrell. "Thirty years of corporate governance: Firm valuation & stock returns." 2009.
[15] L. Donaldson, and J. H. Davis. "Stewardship theory or agency theory: CEO governance and shareholder returns." Vol. 16, no. 1. pp.49-64, 1991.
[16] G. Dowling. "How good corporate reputations create corporate value." Vol. 9, no. 2. pp.134-43, 2006.
[17] D. H. Erkens, M. Hung, and P. Matos. "Corporate governance in the 2007–2008 financial crisis: Evidence from financial institutions worldwide." Vol. 18, no. 2. pp.389-411, 2012.
[18] P. Forrest. Boardroom Matters. Vol. 2, Singapore: Write Edition, 2016.
[19] P. Gompers, J. Ishii, and A. Metrick. "Corporate governance and equity prices." Vol. 118, no. 1. pp.107-56, 2003.
[20] R. Gray, M. Javad, D. M. Power, and C. D. Sinclair. "Social and environmental disclosure and corporate characteristics: a research note and extension." Vol. 28, no. 3‐4. pp.327-56, 2001.
[21] E. Gutiérrez-García. "Corporate communication in corporate governance: Why should it be managed strategically? The Spanish case." 2009.
[22] M. Herciu, and R. A. Şerban. "Creating Value–From Corporate Governance to Total Shareholders Return. An Overview." Vol. 11, no. 2. pp.36-50, 2016.
[23] M. Z. Islam, M. N. Islam, S. Bhattacharjee, and A. Islam. "Agency problem and the role of audit committee: Implications for corporate sector in Bangladesh." Vol. 2, no. 3. pp.177-88, 2010.
[24] M. C. Jensen, and W. H. Meckling. "Theory of the firm: Managerial behavior, agency costs and ownership structure." Vol. 3, no. 4. pp.305-60, 1976.
[25] P. Kotler, and G. Armstrong. "Principles of Marketing (16th Global Edition)." Harlow: Pearson, 2013.
[26] W. Lazonick, and M. O'sullivan. "Maximizing shareholder value: a new ideology for corporate governance." Vol. 29, no. 1. pp.13-35, 2000.
[27] Č. Ljubojević, and G. Ljubojević. "Building Corporate Reputation through Corporate Governance." Vol. 3, no. 3. 2008.
[28] I. Love, and L. F. Klapper. Corporate governance, investor protection, and performance in emerging markets. The World Bank, 2002
[29] T. J. Madden, F. Fehle, and S. Fournier. "Brands matter: An empirical demonstration of the creation of shareholder value through branding." Vol. 34, no. 2. pp.224-35, 2006.
[30] P. Mishra. "Relationship between Brand Equity and Corporate Governance Disclosures: A Study of Top 20 Brands in India ". Vol. 9, no. 2. pp.1-9, 2018.
[31] B. N. a. N. Panchanatham. "Corporate Governance – The Importance of Communication and Culture." Vol. 9, no. 33. pp.1-4, September 2016.
[32] S. Sharma, and M. Singh. "Corporate governance and firm’s performance during subprime crisis: evidence from Indian firms." Vol. 14. pp.12-25, 2018.
[33] K. T. Smith, M. Smith, and K. Wang. "Does brand management of corporate reputation translate into higher market value?". Vol. 18, no. 3. pp.201-21, 2010.
[34] J. Solomon. Corporate governance and accountability. John Wiley & Sons, 2007.
[35] M. Stuebs, and L. Sun. "Corporate governance and social responsibility." Vol. 57, no. 1. pp.38-52, 2015.
[36] S. Subramanian, and V. N. Reddy. "Corporate governance disclosures and international competitiveness: A study of Indian firms." Vol. 11, no. 2. pp.195-218, 2012.
[37] R. K. Yadav, R. Jain, and S. Singh. "Role of Corporate Governance in Brand Building-A case study of PNB MetLife." Vol. 66. pp.1-19, 2017.
[38] B. Finance. “Nation brands 2015”. London: Brand Finance. 2015.