EuroMed J. of Management   »   2016 Vol.1, No.3

 

 

Title: Firm reputation and financial performance of SMEs: the Ghanaian perspective

 

Authors: Abraham Ansong; Otuo Serebour Agyemang

 

Addresses:
School of Business, University of Cape Coast, University Post Office, Cape Coast, Ghana
School of Business, University of Cape Coast, University Post Office, Cape Coast, Ghana

 

Abstract: Our paper examines the effects of firm reputation on financial performance of small and medium scale enterprises (SMEs) in Ghana by controlling for firm specific variables such as firm age, firm size, owner/manager's age, leverage and access to capital. It contributes to our knowledge on how firm reputation enhances the financial performance of SMEs in developing economies. We employed primary data from 423 SMEs within the Accra Metropolis. Standard regression analysis was used to analyse the data. We documented a significant positive association between firm reputation and firm performance, denoting that high corporate reputation by an SME enhances its performance. In addition, with the exception of firm size, there was a significant positive relationship between all the control variables and financial performance of SMEs.

 

Keywords: firm reputation; financial performance; small and medium scale enterprises; SMEs; firm performance; access to capital; firm image; organisational identity; corporate reputation; emerging economies; Ghana; firm size.

 

DOI: 10.1504/EMJM.2016.10002043

 

EuroMed J. of Management, 2016 Vol.1, No.3, pp.237 - 251

 

Submission date: 13 Jan 2016
Date of acceptance: 22 Jan 2016
Available online: 19 Dec 2016

 

 

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