Irdha Yusra, Syukri Lukman, Rida Rahim, Fajri Adrianto
Information asymmetry in the Indonesian capital market exacerbates access inequity between insiders and investors and erodes pricing efficiency. This study aims to examine the effects of corporate social responsibility (CSR) disclosure and private information on information asymmetry, as well as the mediating role of firm reputation among issuers on the Indonesia Stock Exchange. The method used is panel data regression with the Fixed Effects Model (FEM). The sample consists of 129 companies. FEM estimation results indicate that CSR disclosure has a negative and significant effect on information asymmetry, thus empirically supporting the role of CSR as a transparency signal that reduces information asymmetry. Empirically, no significant contribution of private information to information asymmetry was found. Another key finding is that CSR disclosure has a positive and significant effect on corporate reputation, indicating that the market views sustainability commitments as part of corporate evaluation. Theoretically, these results reinforce signalling theory and stakeholder theory in the context of emerging markets. In practice, the findings provide a basis for management to integrate CSR reporting into investor communication strategies and for investors to consider the completeness of non-financial disclosures when assessing information risk. From a policy perspective, the findings support strengthening a mandatory, verified, and materiality-based sustainability reporting framework to realize the benefits of transparency in the Indonesian capital market. © 2026, Czestochowa University of Technology. All rights reserved.
Department of Management, Faculty of Business and Economics, Andalas University, Indonesia; Department of Management, Universitas Negeri Padang, Indonesia
