Corporate Financial Decisions and Stock Market Performance: Evidence from Indonesian Food Manufacturing Firms

This study examines the relationship between corporate financial decisions and stock market performance among food-related manufacturing firms listed on the Indonesia Stock Exchange. Using panel data from publicly listed companies over the observation period, the study employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze the effect of dividend and investment decisions on stock returns. The findings indicate that corporate financial decisions have a positive and statistically significant effect on stock market performance, suggesting that investors respond to financial signals conveyed through managerial decision-making. The results support signaling and agency theory perspectives and highlight the strategic importance of financial decisions in shaping investor perceptions within an emerging market context.