The Impact of Corporate Reputation on Financial Leverage and Trade Credit

This study aims to investigate the relationship between corporate reputation and financing decisions. In line with the research objectives, the Tehran Stock Exchange accepted 174 companies selected in the 1390 to 1401 period. To measure corporate reputation, a combined scoring approach was used with...

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Main Authors: Mohsen Khotanlou, Mahdi Kazemiolum, Farzad Ziyaei
Format: Article
Language:fas
Published: Alzahra University 2025-03-01
Series:راهبرد مدیریت مالی
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Online Access:https://jfm.alzahra.ac.ir/article_8200_3fdf350d8d6caaa01317899b5a337a29.pdf
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author Mohsen Khotanlou
Mahdi Kazemiolum
Farzad Ziyaei
author_facet Mohsen Khotanlou
Mahdi Kazemiolum
Farzad Ziyaei
author_sort Mohsen Khotanlou
collection DOAJ
description This study aims to investigate the relationship between corporate reputation and financing decisions. In line with the research objectives, the Tehran Stock Exchange accepted 174 companies selected in the 1390 to 1401 period. To measure corporate reputation, a combined scoring approach was used with four components of reputation, including price-to-earnings ratio, Tobin's Q, long-term investment ratio, firm age, and top 100 ranking companies of Industrial Management Organization used as an alternative measure of corporate reputation. Multiple regression with generalized least squares estimation method was used as the primary approach and generalized methods of moments as complementary method for estimating models. Findings showed a positive and significant relationship between corporate reputation score and financial leverage. Also, findings show an inverse and significant relationship between corporate reputation and trade credit. In addition, similar findings were observed using ranking the top 100 companies of the Industrial Management Organization. The supplementary test results with generalized methods of the moments approach have also confirmed the strength of the main results.
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series راهبرد مدیریت مالی
spelling doaj-art-c01a766a70d84aa6adb57a0f85be250c2025-08-20T01:57:59ZfasAlzahra Universityراهبرد مدیریت مالی2345-32142538-19622025-03-011319911610.22051/jfm.2024.47865.29448200The Impact of Corporate Reputation on Financial Leverage and Trade CreditMohsen Khotanlou0Mahdi Kazemiolum1Farzad Ziyaei2Department of Accounting، Faculty of Economics and Social Science، Bu-Ali Sina University، Hamedan، IranDepartment of Accounting, Faculty of Economics and Social Science, Bu-Ali Sina University, Hamedan, Iran.Accounting Department, Faculty of Economics and Social Science, Bu-Ali Sina University, Hamedan, Iran.This study aims to investigate the relationship between corporate reputation and financing decisions. In line with the research objectives, the Tehran Stock Exchange accepted 174 companies selected in the 1390 to 1401 period. To measure corporate reputation, a combined scoring approach was used with four components of reputation, including price-to-earnings ratio, Tobin's Q, long-term investment ratio, firm age, and top 100 ranking companies of Industrial Management Organization used as an alternative measure of corporate reputation. Multiple regression with generalized least squares estimation method was used as the primary approach and generalized methods of moments as complementary method for estimating models. Findings showed a positive and significant relationship between corporate reputation score and financial leverage. Also, findings show an inverse and significant relationship between corporate reputation and trade credit. In addition, similar findings were observed using ranking the top 100 companies of the Industrial Management Organization. The supplementary test results with generalized methods of the moments approach have also confirmed the strength of the main results.https://jfm.alzahra.ac.ir/article_8200_3fdf350d8d6caaa01317899b5a337a29.pdfcorporate reputationfinancial leveragetrade creditgeneralized methods of moments
spellingShingle Mohsen Khotanlou
Mahdi Kazemiolum
Farzad Ziyaei
The Impact of Corporate Reputation on Financial Leverage and Trade Credit
راهبرد مدیریت مالی
corporate reputation
financial leverage
trade credit
generalized methods of moments
title The Impact of Corporate Reputation on Financial Leverage and Trade Credit
title_full The Impact of Corporate Reputation on Financial Leverage and Trade Credit
title_fullStr The Impact of Corporate Reputation on Financial Leverage and Trade Credit
title_full_unstemmed The Impact of Corporate Reputation on Financial Leverage and Trade Credit
title_short The Impact of Corporate Reputation on Financial Leverage and Trade Credit
title_sort impact of corporate reputation on financial leverage and trade credit
topic corporate reputation
financial leverage
trade credit
generalized methods of moments
url https://jfm.alzahra.ac.ir/article_8200_3fdf350d8d6caaa01317899b5a337a29.pdf
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