American Journal of Humanities and Social Sciences Research (AJHSSR) 2021 AJHSSR Journal Page | 85 American Journal of Humanities and Social Sciences Research (AJHSSR) e-ISSN : 2378-703X Volume-5, Issue-2, pp-85-92 www.ajhssr.com Research Paper Open Access The influence of Financial Performance on Company Reputation With Anti-Corruption Disclosure Area As A Moderating Variable Ni Kadek Laksmi Vira Santhi, Made Gede Wirakusuma 1 (Faculty of Economics and Business, Udayana University (Unud), Bali,Indonesia) 2 (Faculty of Economics and Business, Udayana University (Unud), Bali,Indonesia) ABSTRACT:Company reputation can be created from company performance. However, the existence of issues such as corruption that occurs in several companies can also affect the company's reputation, especially from the investor's point of view. Therefore this study aims to determine the effect of financial performance on company reputation as moderated by the extent of anti-corruption disclosure. This research was conducted on all state-owned companies listed on the IDX for the 2017-2019 period, with a sample size of 20 companies. Data were collected using non-participant observation methods, and the analysis techniques used were simple regression analysis and absolute difference test. Based on the analysis, it is found that financial performance does not affect the company's reputation, especially from the investor's point of view. In addition, it is partially found that anti-corruption disclosure does not have a significant effect on the relationship between financial performance and company reputation, which means that anti-corruption disclosure is not a moderating variable. KEYWORDS:financial performance, anti-corruption disclosure; company’s reputation. I. INTRODUCTION Shenkar & Yuchtman-Yaar (1997) equate reputation with image, self-respect, good name, and goodwill in developing the concept of an organization. Quoted from Derun & Mysaka (2018) different stakeholder groups can view and describe a company's reputation differently (Foroudi et al., 2014; Olmedo- Cifuentes et al., 2014; Pritchard & Wilson, 2018). One of the stakeholder groups that pay attention to the company's reputation in making decisions is investors. Ali et al. (2015) states that the company's financial performance, company age, company size, media visibility, corporate social performance, and long-term institutional ownership are the antecedents of reputation. According to IAI (2007) quoted from Akmalia et al. (2017), to assess potential changes in the future, company performance information is needed, especially profitability. Performance information is also useful in predicting the company's capacity to generate cash flow from existing resources, and is useful in formulating considerations related to the company's effectiveness in utilizing its resources. Financial performance can be one of the benchmarks for the success of the company's performance because it describes how the condition of the company is analyzed using financial analysis tools. The reputation that has been built can be damaged by ongoing issues. Islam et al. (2018) support the view that all companies in an industry respond the potential negative consequences of a damaged reputation even when one company in an industry violates social norms. One of the issues of concern to the public is the issue of corruption. Investors understand that corruption has a negative effect on the value, operational and reputation risk of their investments (Saenz & Brown, 2018). There were a total of 73 cases of corruption that occurred in BUMN / BUMD companies in Indonesia from 2004 to 2019, and 51 cases of them occurred in 2014 - 2019. Several studies have been conducted on the relationship between financial performance and company reputation. Jao, et. al. (2020) conducted research on financial performance, reputation, and company value in non-financial companies in Indonesia with the result that good financial performance increases the company's reputation and value. Sandu & Ianole (2016) also examined the most important aspects for a company's reputation, and found that economic performance was one of several factors that influenced three out of four cases analyzed (decisions to buy, invest, and work). However, based on research from the Reputation Institute, financial performance boosts reputation by only 12.9%. Financial results can affect the company's reputation more significantly depending on the specific stakeholder, company, market, or industry (Jenny Cho, 2019). Meanwhile, the issue of corruption that reportedly occurs in several state-owned companies can also affect the company's reputation that has been formed in the eyes of stakeholders, especially investors. These issues raise a