Corporate reputation in Brazil: do board characteristics matter?

Abstract

Purpose – This paper aims to analyse the influence of board characteristics on corporate reputation. Design/methodology/approach – In total, 128 Brazilian publicly traded companies from Refinitiv Eikon were analysed between 2016 and 2020. The dependent variable was corporate reputation, whereas the independent variables were board size, gender diversity, board independence and audit committee presence. Multivariate analysis was used. Findings – The results presented empirical evidence that board members can impact corporate reputation. Findings showed that board size, gender diversity and independence positively influence Brazilian companies’ corporate reputation. Conversely, an audit committee had no significant impact on corporate reputation. Research limitations/implications – The paper presents a contribution to the significance of board members in shaping a company's corporate reputation, using the signalling theory and the resource-based view (RBV) theory. Practical implications – Regarding practical implications, this work provides subsidies for managers to value board characteristics because they directly reflect on corporate reputation and competitive advantage, leading to more sustainable performance. Social implications – The research findings highlight that a diverse board encourages the organisation to improve its workforce, human rights, relations with the community and responsibility for manufactured products. Originality/value – The relationship between board characteristics and corporate cooperation is poorly established in the literature. Furthermore, the results prove the RBV theory in an emerging context. Similarly, the signalling theory proved helpful in improving Brazilian firms’ corporate reputation.

Keywords

• Corporate reputation
• Board characteristics
• Corporate governance
• Signalling theory
• Resourced-based view theory
• Corporate social responsibility