The Effect of Corporate Reputation Towards Firm’s Financial Performance: An Indonesia Perspective

Salsabiilaa Faadlilah Putri Herlambang,Mohammad Nasih

Corporate reputation is the general estimation in which an association is held by its partners based on its past activities and likelihood of its future conduct. This study aimed to determine the empirical evidence of the corporate reputation influence towards financial performance of the firm in Indonesia. In this study, the authors expect that higher corporate reputation generate higher financial performance. This study used quantitative approach. This study analyzed secondary data from audited financial report in Indonesia Stock Exchange (ISE) and Indonesia Capital Market Directory (ICMD). The data was analyzed using statistic method using 930 firms listed in Indonesia Stock Exchange for year 2013 to 2016. The key result of this work has shown that corporate reputation had positive and significant effect toward financial performance. On the other hand, the result of this work showed that there is no differences of financial performance among the companies listed in INV100 and FORB50.

Volume 11 | 05-Special Issue

Pages: 1329-1334