A Research on Corporate Reputation, Governance Structures, Risk Taking Behavior, and Performance

Corporate reputation and governance structure are closely related to agency problems, and further managerial behavior, also contributes to determining corporate performance. So, risk taking under consideration of reputation and is governance structure is likely to be deeply helpful in explaining corporate performance. By means of data from KRX (non-financial companies, 2008-2017) we test some research hypotheses on whether risk taking given corporate reputation and/or governance structure leads to different corporate performance. We document that risk taking given corporate reputation in line with governance helps explain corporate performance. Our test shows that reputation and governance significantly explain corporate performance. Sub-divided governance variables have different effects, and reputation in connection with governance have significant effect on corporate performance. In addition, we find that if firms with reputation and with higher ownership concentration take risk it will lead to better corporate performance. We suggest that corporate performance has to be reexamined taking corporate reputation, governance structure, and risk taking behavior simultaneously.