Impact of Perception of Corporate Reputation in Higher Education on Financial Performance: The Case of a Foundation University

Abstract

This study assesses the effects of the perception of corporate reputation in foundation universities on economic impact by using a specific foundation university as a case study. The study uses quantitative research method and data is collected through a questionnaire. In preparing the questionnaire, a six dimensional reputation scale which is widely accepted in the literature is used. In the study a specific foundation university which has reached a certain size is selected and students are recognized to be the most important stakeholders of an institution of higher education. The survey results are analyzed by using structural equation modeling and components that make up the perceived reputation of selected foundation university are put in order of importance. Financial performance that represents economic impact is analyzed with a macroeconomic point of view by examining its relationship with other dimensions. The concept of corporate reputation is shown to be important not only for businesses operating for profit, but also for non-profit economic institutions. As having a corporate reputation has macroeconomic benefits for human capital, economic development, employment and so on, the study also points to the importance of more academic research on corporate reputation in the context of economics.