Penelitian terdahulu membuktikan bahwa perusahaan keluarga melakukan praktek manajemen laba dibandingkan perusahaan non keluarga (Chi et.al,2015) referensi. Namun, pada sisi lain perusahaan keluarga berupaya agar praktik manajemen laba tidak merusak reputasi perusahaan (Wang, 2006). Perusahaan keluarga di Asia umumnya berorientasi jangka panjang dan mewariskan reputasi yang baik kepada generasi berikutnya. Keberhasilan manajemen perusahaan keluarga mengelola manajemen laba agar tidak merusak reputasi pada akhirnya ditentukan oleh pasar. Penelitian mengenai reputasi perusahaan keluarga sepemahaman peneliti belum dilakukan di Indonesia, meskipun perusahaan di Indonesia didominasi oleh perusahaan keluarga. Penelitian ini bertujuan menganalisis reaksi pasar atas praktik manajemen laba dan reputasi perusahaan keluarga. Penelitian ini menggunakan regresi linear untuk menganalisis pengaruh manajemen laba dan reputasi perusahaan keluarga terhadap Cummulative Abnormal Return saham atas 453 sampel yang berasal dari 151 perusahaan keluarga dengan periode penelitian 2017 – 2019. Hasil penelitian menunjukkan bahwa pasar tidak merespon reputasi perusahaan keluarga. Pasar hanya merespon praktek manajemen laba perusahaan keluarga secara negatif./ Previous research has shown that family companies did earnings management practices compared to non-family companies (Chi et.al, 2015). However, on the other hand, family companies try to prevent earnings management practices that have potential to damage the company's reputation (Wang, 2006). Family companies in Asia are generally long-term oriented and hand on the good reputations to the next generation. The success of the management of the family companies in managing earnings management so as not to damage reputation is ultimately determined by the market. Research on the reputation of family companies as per the researchers' understanding has not been carried out in Indonesia, even though companies in Indonesia are dominated by family companies. This study aims to analyze the market reaction to earnings management practices and the reputation of family companies. This study uses linear regression to analyze the effect of earnings management and family companies reputation on Cummulative Abnormal Return on shares of 453 samples from 151 family companies with the study period 2017 - 2019. The results show that the market does not respond to the reputation of family companies. The market only responds negatively to the earnings management practices of family firms.