Impact of Corporate Reputation on Firm Risk: An Analysis of Pakistan Stock Exchange Listed and PACRA Rated Firms


  • Allah Bakhsh Khan Assistant Professor, Department of Commerce, Bahauddin Zakariya University, Multan, Pakistan
  • Muhammad Hanif Akhtar Professor of Commerce, Bahauddin Zakariya University, Multan, Pakistan
  • Adeel Akhtar Assistant Professor, Bahauddin Zakariya University, Multan, Pakistan



PSX, PACRA, Firm Risk, Credit Rating


This study has examined the impact of corporate reputation on risk exposure of the firms listed at Pakistan Stock Exchange (PSX) and rated by Pakistan Credit Rating Agency (PACRA). It has employed firm’s credit ratings as a proxy for corporate reputation. It has covered the time period from 2007-2016 and unbalanced and undated panel regression analysis has been carried out to observe the significance of the relationship among corporate reputation and the firm risk i.e. total risk and its parts (systematic and unsystematic risk). It has been found that corporate reputation has a significant negative relationship with total risk and systematic risk of the firm. It is however found that corporate reputation is insignificant in explaining the unsystematic risk of the firms. Leverage and profitability (the control variables) are also found significant in explaining the risk exposures of the firms.


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How to Cite

Allah Bakhsh Khan, Muhammad Hanif Akhtar, & Adeel Akhtar. (2020). Impact of Corporate Reputation on Firm Risk: An Analysis of Pakistan Stock Exchange Listed and PACRA Rated Firms. Review of Economics and Development Studies, 5(2), 365-372.