The Financial Performance-Corporate Reputation Nexus in Turkey in the Institutional Theory Context

The scholars who indicate the institutional quality as one of main sources of economic growth state that any endeavor of companies increasing production and employment are no longer sufficient for sustainable growth. Therefore, economies need intangible assets such as corporate reputation (CR). CR entirely depends on stakeholders’ perception. In this study, we investigate the potential linkage between CR and financial performances of companies, which can affect the stakeholders’ perception, in Turkey between 2006 and 2016. The results show that any increase in companies’ assets fosters the perceptions of stakeholders in next period while a raise in indebtedness causes worse reputation