Indonesia’s economy heavily relies on the capital market, where companies offer stocks and bonds to the public. Investors expect to gain profits, but reactions can be irrational, especially when hearing negative news that leads to quick selling, affecting the expected returns. The capital market plays a vital role in supporting economic growth and investor confidence through the principles of legal transparency and accountability. The method used in this research is a civil law approach focusing on the analysis and interpretation of legal provisions related to transparency and legal accountability in the stock market, as well as disclosure obligations. This approach involves examining legal regulations governing information disclosure in the stock market.The research findings emphasize the importance of transparency in financial reporting to build investor confidence in the capital market. Honest and timely financial information helps strengthen trust, facilitate better investment decision-making, and reduce investment risks. Transparency forms a crucial foundation in the mutually beneficial relationship between companies and investors, supporting market stability and economic growth. Transparency, accountability, and legal enforcement in Indonesia’s capital market support investor confidence and market stability. This facilitates smart investment decision-making and preserves the integrity of the stock market. This legal foundation is essential for a healthy and sustainable capital market ecosystem.
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