The Effect of It Investment on Financial Performance (Case Study on Manufacturing Sector Companies Listed on IDX Year 2013 – 2016)

ABSTRACT : It is important for the company to determine the business strategy for the company in order to
achieve a competitive advantage in the face of competition. One of the strategies undertaken by the company is
information technology-based strategy, investment in information technology is used to support business
activities so that it can affect the financial performance of the company. This research reveals the relationship of
information technology investment with the company’s financial performance. Information technology
investments are measured using the ratio of information technology assets to total company assets, while
financial performance is measured using Return on Assets. The sample in this research is 80 samples from
manufacturing companies listed in Indonesia Stock Exchange period 2013-2016. The results showed that
information technology investment affect the financial performance of the company.
Keywords – information technology investment, financial performance, return on asset