Juniati Gunawan, Criselda Elsa


This study aims to examine the influence of risk disclosures on a company's reputation, which was measured by the Indonesia’s Most Admired Company (IMAC) nomination in 2018. The sample applies the whole population registered in the IMAC. There were 133 companies which provided all data required. Using content analysis to calculate risk disclosures as independent variable and company's reputation by the Corporate Image Index (CII) as dependent variable, this study shows that risk disclosures has a significant influence on the company's reputation.

The results provide a new perspective on disclosure risk and company’s reputation since previous studies were very limited searching on risk disclosures related to corporate image. Since CII is publicly available, the risk disclosures need to be paid attention to balance the information for the stakeholders. Hence, this study contributes greatly for both academic and practice to understand that risk information may impact the corporate reputation, and therefore, adequate and balance disclosure (negative and positive information) is required.   


Risk Disclosures, Company Reputation, Corporate Image Index

Full Text:


Article Metrics

Abstract views : 0| PDF views : 0


Ali, M.M. and Taylor. (2014). Corporate risk disclosure in Malaysia: the influence of pre-disposition of Chief Executive officers and chairs of audit committee. Research Journal of Finance and Accounting, Vol. 5, pp. 92-106.

Allini, A., Manes Rossi, and Hussainey. (2016). The board’s role in risk disclosure: an exploratory study of Italian listed state-owned enterprises. Public Money and Management, Vol. 36, pp. 113-120.

Armitage, S. and Marston. (2008). Corporate Disclosure, Cost of Capital and Reputation: Evidence from Finance Directors. The British Accounting Review, Vol. 40, pp. 314-336.

Aula, P. and Mantere. (2008). Strategic Reputation Management, Towards a Company of Good, Routledge, London.

Beyer, A., Dye R. A. (2012). Reputation management and the disclosure of earnings forecasts. Review of Accounting Studies, Vol. 17, pp. 877–912.

Chong, T. S. (2013). Exploring Corporate Risk Transparency: Corporate Risk Disclosure and the Interplay of Corporate Reputation, Corporate Trust and Media Usage in Initial Public Offerings. Corporate Reputation Review, Vol. 16, pp. 131-149.

Elshandidy, T.M. (2011). Risk reporting incentives: a cross-country study, Master Thesis, University of Sterling, Sterling.

Elshandidy, T. and Neri . (2015). Corporate governance, risk disclosure practices, and market liquidity: comparative evidence from the UK and Italy. Corporate Governance: An International Review, Vol. 23, pp. 331-356.

Elshandidy, T., Fraser, and Hussainey. (2013). Aggregated, voluntary, and mandatory risk disclosure incentives: evidence from UK FTSE all-share companies. International Review of Financial Analysis, Vol. 30, pp. 320-333.

Fombrun, C.J. (1996). Reputation: Realizing Value from the Corporate Image, Harvard Business School Press, Boston, MA

Frontier Consluting Group. (2018). 2017 survey result. Available At : www.imacaward.com (Accessed 1st November 2018)

Gatzert, N., Schmit, and Kolb. (2014). Assessing the risks of insuring reputation risk. Journal of Risk and Insurance, Vol. 83, No. 3.

Gunawan, Juniati. (2015) "Corporate social disclosures in Indonesia: stakeholders’ influence and motivation", Social Responsibility Journal, Vol. 11 Issue: 3, pp.535-552,

Hanafi, Mamduh M. and Abdul Halim. (2014). Financial Report Analysis, Seven Edition. UPP AMP YKPN. Yogyakarta.

IDX. (2018). Financial and Annual Reports. Available at: www.idx.co.id (Accessed December 23rd 2018)

Ismail, R.F., Arshad, and Othman. (2012). The influence of voluntary risk disclosure on firm market value, 3rd International Conference on Business and Economic Research, Golden Flower Hotel, Bandung.

Jensen, M. C., and Meckling. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownerchip Structure. Journal of Financial Economics, Vol.4, pp. 305-360.

Kongpunya, P., Ussahawanitchakit, Khankaew. (2011). Accounting Sustainability, Disclosure Quality, Business Ethics, and Corporate Reputation: Evidence from Thai Listed Firms. International Journal of Business Research, Vol. 11, pp. 93-107.

Kravet, T. and Muslu. (2013). Textual risk disclosures and investors’ risk perceptions. Review of Accounting Studies, Vol. 18, pp. 1088-1122.

Leite, R. and Padgett. (2014). The effect of corporate social actions on organizational reputation. Management Research Review, Vol. 37, No.2, pp. 167-185.

Louhichi, W., & Ousayna Zreik. (2015). Corporate Risk Reporting : A Study of The Impact of Risk Dislosure on Firm Reputation. Economics Bulletin. Vol. 35. pp. 2395-2408.

Malafronte, I., Starita, Pereira J. (2018). The effectiveness of risk disclosure practices in the European insurance industry, Review of Accounting and Finance, Vol. 17, No.1, pp.130-147.

Mazzola, P., Ravasi, Gabbioneta. (2006). How to Build Reputation in Financial Markets. Long Range Planning, Vol. 39, pp. 385-407.

Mensah, Ben Kwame Agyei. (2019). The effect of audit committee effectiveness and audit quality on corporate voluntary disclosure quality. African Journal of Economic and Management Studies, Vol. 10, Iss.1.

Mulyawan, Setia. (2015). Risk Management. Bandung: CV Pustaka Setia.

Putri, Ni Gusti Ayu Putu Sueka and Saarce Elsye Hatane. (2016). Effects of Corporate

Reputation on Financial Performance Through Innovation Capability as an Intervening Variable in the Hospitality Industry in Surabaya. Journal Business Accounting Review, Vol.4, No.1.

Rustiarini, Ni Wayan. (2012). Corporate Governance, Enterprise Risk Management Ownership and Disclosure Concentration. Journal of Financial Management Accountability, Vol. 11

Sarstedt, M., Wilczynski, and Melewar. (2013). Measuring reputation in global markets – a comparison of reputation measures’ convergent and criterion validities. Journal of World Business, Vol. 48, No.3, pp. 329-339.

Sugiyono. (2009). Educational Research Methods Quantitative, Qualitative and R & D Approaches. Bandung: Alfabeta

Ussahawanitchakit, P. (2011). Accounting Disclosure, Social Learning and Corporate Reputation: Evidence from Thai Listed Firms. International Journal of Business Research, Vol. 11, pp. 1-9.

Yusdantara, I. K., Gede Bayu. (2015). Effects of Corporate Social Responsibility on the Reputation of Companies that are Mediated by Customer Satisfaction. Udayana Management Journal, Vol. 4, No. 4, pp. 813-831

DOI: http://dx.doi.org/10.25105/mraai.v20i2.7628


  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

 Creative Commons License

Media Riset Akuntansi, Auditing & Informasi Creative Commons Attribution-NonCommercial 4.0 International License.