The Role of Ethical Accounting Practices in Enhancing Corporate Reputation in Kurdistan’s Banking Institutions

Abstract

This study aims to explore how ethical accounting practices shape corporate reputation in Kurdistan’s banking institutions. While the link between ethics and reputation is established globally, a significant knowledge gap exists regarding this relationship within Kurdistan's unique socio-economic context. Specifically, it examines four core dimensions; transparency, fairness, compliance and accountability, and their combined impact on the corporate reputation of banks operating in the region. A multiple linear regression model was estimated using 128 questionnaire responses collected from auditors, financial officers, compliance officers and internal controllers of 20 selected banks in Kurdistan. The results indicate that these ethical accounting dimensions positively and significantly impact corporate reputation. This study provides novel, localized evidence from a developing economy, highlighting that each factor contributes uniquely to corporate reputation, offering organizations practical ways to strengthening reputation.

Banks are encouraged to enhance ethical standards in financial reporting by reinforcing transparency, fairness, compliance and accountability to foster trust and improve reputation among stakeholders.