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- Title
ARE FINANCIAL STATEMENTS (LESS) FUNDAMENTAL TO INVESTOR'S DECISIONS?: STUDY OF INDONESIAN STOCK EXCHANGE.
- Authors
Setiawanta, Yulita; Ghozali, Imam; Rohman, Abdul; Purwanto, Agus
- Abstract
This study aims to determine whether financial performance information companies listing on PT. IDX to investors through stock prices is still fundamental or not and also to find out whether investors need information other than financial data. Information on the financial performance in this study was proxied by profitability measured by ROA and ROE, CR and solvency measured DER measured liquidity, and closing stock prices measured investor reaction. The object of this research was the LQ45 company, which topped the list consecutively from 2008 to 2017. This type of research object was intentionally sought, which stood in the top list of companies whose shares are most sought after by investors for ten consecutive years, and obtained 110 data samples for processing. The results showed that solvency (DER) and liquidity (CR) influenced investor reactions at the 5% significance level, while profitability (ROA) and ROE did not affect. Thus explains that information about Solvency and Liquidity is financial information that is still relevant or fundamentally needed by investors. At the same time, it found that profitability was less suiTab. as a signal which had a significant impact on investors' investment decisions.
- Publication
Scientific Papers of the University of Pardubice. Series D, Faculty of Economics & Administration, 2020, Vol 28, Issue 1, p150
- ISSN
1211-555X
- Publication type
Academic Journal