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.
