The impact of corporate reputation on credit rating quality in an Asian market: the moderating role of economic policy uncertainty

Purpose The present study aims to investigate the impact of corporate reputation (CREP) on credit rating quality (CRQ) and the moderating role of economic policy uncertainty (EPU) for companies listed on the Tehran Stock Exchange (TSE). Design/methodology/approach This study analyzed data from 191 companies from 2014–2023. Brand equity scales were used to measure CREP. Brand equity was calculated using the corporate brand success approach. In addition, the CRQ was determined using the technique for order of preference by similarity to ideal solution method and the entropy weighting method. Economic growth and inflation rate were used to calculate EPU. Findings The results showed that CREP has a significant positive effect on CRQ. EPU significantly lowers the positive impact of CREP on CRQ. These results remained robust even after several robustness tests. Originality/value The concept of CREP is still being developed, with researchers working on improving its theoretical foundations and measurement methods. Presumably, companies with good reputations are less risky and more likely to receive higher credit ratings. However, previous research has not addressed this issue. Decision-making on credit is filled with uncertainties, and the concept of credit rating was developed to make these uncertainties more manageable. The present study provides evidence to support the validity of theoretical predictions which have not received attention in previous studies. The present findings can help companies obtain better credit ratings, especially during times of high policy uncertainty.