INFORMATION CHANGES IN EARNINGS AND CASH FLOWS STOCK PRICES: STUDY OF COMMERCIAL BANKS LISTED ON THE INDONESIA STOCK EXCHANGE FOR THE 2015-2019 PERIOD)
Abstract
This research was conducted to analyze the effect of information changes in earnings by using net income that has an impact on stock prices and analyzing the effect of information changes in cash flows that have an impact on stock prices. The method used in this study is a descriptive and verification method with a quantitative approach. The Source of data used in this study is secondary data. The population in this study is the annual financial statements of foreign exchange commercial banks listed on the Indonesia Stock Exchange in 2015-2019. The sampling technique in this study was purposive sampling with the number of samples used in this study as many as 65 financial statements from 13 foreign exchange commercial banks during 2015-2019. The statistical test used to test the hypothesis in this study is multiple linear regression, and using SPSS 20.0 software analysis. The results of hypothesis testing in this study indicate that net income has a positive and significant effect on stock prices. While the cash flow variable has a negative and no significant effect on stock prices.
Downloads
References
2. Bepari, K., Rahman, S. F., & Mollik, A. T. (2013). Value relevance of earnings and cash flows during the global financial crisis. Review of Accounting and Finance.
3. Campbell, J. L., Cecchini, M., Cianci, A. M., Ehinger, A. C., & Werner, E. M. (2019). Tax-related mandatory risk factor disclosures, future profitability, and stock returns. Review of Accounting Studies, 24(1), 264-308.
4. Dechow, P. M., Sloan, R. G., & Zha, J. (2014). Stock prices and earnings: A history of research. Annu. Rev. Financ. Econ., 6(1), 343-363.
5. Dikau, S., & Volz, U. (2018). Central banking, climate change and green finance. Journal of Management
6. Fahmi, Irham. (2015). Pengantar Manajemen Keuangan Teori dan Soal Jawab. Bandung: Alfabeta.
7. Franc-Dąbrowska, J., Mądra-Sawicka, M., & Milewska, A. (2019). Energy Sector Risk and Cost of Capital Assessment—Companies and Investors Perspective. Energies, 14(6), 1613.
8. Ghozali, Imam. (2011). “Aplikasi Analisis Multivariate Dengan Program SPSS”. Semarang: Badan Penerbit Universitas Diponegoro.
9. Kamsir, 2011, Analisis Laporan Keuangan, Edisi 1, Cetakan 4, Penerbit PT Raja Grafindo Persada, Jakarta.
10. Kusnendi, K., & Utami, S. A. (2020). The Influence of Inflation, Exchange Rates, CAR and NPF to Stability of Islamic Banks in Indonesia Period 2015-2019. IQTISHODUNA: Jurnal Ekonomi Islam, 9(1), 29-54.
11. Mostafa, W. (2016). The value relevance of earnings, cash flows and book values in Egypt. Management Research Review.
12. Nugraha, N. M., & Riyadhi, M. R. (2019). The Effect of Cash Flows, Company Size, and Profit on Stock Prices in SOE Companies Listed on Bei For the 2013-2017 Period. International Journal of Innovation Creativity and Change, 6(7), 130-141.
13. Obaidat, A. N. (2019). IS ECONOMIC VALUE ADDED SUPERIOR TO EARNINGS AND CASH FLOWS IN EXPLAINING MARKET VALUE ADDED? AN EMPIRICAL STUDY. International journal of business, accounting, & finance, 13(1).
14. Sugiyono. (2018). Metode Penelitian Kombinasi (Mixed Methods). Bandung: CV Alfabeta.
15. Zulfikar. 2016. Pengantar Pasar Modal Dengan Pendekatan Statistika. Edisi Pertama. Yogyakarta: CV. Budi Utama