Legal Protection Of Investors Against Windows Dressing In Terms Of Capital Market Law And Good Corporate Governance

Abstract

The capital market is a source of corporate funds through initial public offerings to investors. Although it offers benefits, companies must comply with regulations and good governance. Some companies use "windows dressing" on financial statements for a positive image, but this is risky for investors and violates the principles of good corporate governance. The method used is normative juridical, which means that the research is carried out by examining various laws and regulations that are available and applicable in Indonesia. the result of this research is that it can be said that windows dressing is contrary to the capital market law and the principles of good corporate governance. in connection with this, it opens opportunities for those who experience losses as a result of windows dressing where the party can sue on the basis of tort, and use Article 111 of the Capital Market Law. Windows dressing harms investors, companies, and the capital market. Legal protection is needed to prevent and tackle the falsification of financial statements. This involves strict rules, effective penalties, and grounds for claiming damages by the injured party. Enforcement of good corporate governance is key to maintaining transparency and accountability.