Analysis Of Financial Statements On Investment Decisions In Online Shop Companies Listed On The Indonesian Stock Exchange
Keywords:
Financial Statements, Investment Decisions, Return on Equity (ROE)Abstract
The development of e-commerce companies listed on the Indonesia Stock Exchange (IDX) emphasizes the need for financial statement analysis as a basis for investment decision-making. This study aims to evaluate the effect of financial statements on investment decisions in e-commerce companies using a laboratory experiment method. The study applied a posttest control group design, involving 36 participants divided into two manipulation groups: good and poor financial performance disclosure. Data analysis was performed using a Repeated Measures t-Test to assess the difference in investment responses between the two conditions. The results show that financial statements, particularly the Return on Equity (ROE) ratio, have a significant influence on investment decisions, with participants more likely to invest in companies with good financial performance. These findings emphasize the importance of transparency and quality in financial reporting in building investor confidence, while also recommending that companies avoid manipulating financial ratios in order to maintain the credibility of their reports.
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