Our research aims to find the empirical evidence of bank ownership structures on bank reputation through the mediating role of sustainability reporting (SR) in the Indonesia banking sector. This paper uses purposive sampling to obtain 279 observations data from 43 listed banks in Indonesia Stock Exchange (IDX) throughout 2011-2017 with panel data regression while analyzed using STATA statistics software. The empirical results evidence: (1) Foreign, government, and public ownership have a significant positive effect on SR but not with family ownership; (2) SR positively affects the bank's reputation significantly; (3) SR could be a mediator in which foreign, government and public ownership have a positive effect on the bank's reputation through the indirect effect of SR but not with family ownership. The practical contribution of this research is that SR is proven to increase bank reputation through the legitimation from the public, so the management must pay attention to publish this report. We provide several novelties to the literature: (1) Use SR as a mediator on the relationships between ownership and bank reputation because as far as we know, there is no study about these three aspects, especially in Indonesia; (2) Initiating the customer deposits as a measurement base of the bank reputation, because it reflects better the trust and perception of society so it is relevant with the reputation level.

Keywords

Indonesia, Bank, Reputation, Sustainability Reporting, Ownership Structure