Impact of Cash Flow and Profit on Stock Returns of IDX-Listed Pharmaceutical Companies
Abstract
This study aimed to provide empirical evidence on the effects of operating cash flow, investment cash flow, funding cash flow, and earnings on stock returns in pharmaceutical companies listed on the Indonesia Stock Exchange. A sample of 10 companies was selected using purposive sampling, with data collected through non-participant observation. Multiple linear regression analysis was applied. The findings indicate that investment cash flow and earnings positively affect stock returns, while operating and funding cash flows have a negative impact. These results highlight the relevance of signaling and agency theories in explaining these relationships.
Keywords: stock return; operating cash flow; investment cash flow; funding cash flow; profit
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References
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Sulaiman, & Suriawinata, I. S. (2020). Analysis of the Effect of Accounting Profit, Operating Cash Flow, Funding Cash Flow, Debt to Equity Ratio, Current Ratio and Stock Risk on Stock Returns. 29(01), 90-107.
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Suaryana, I. G. N. A. (2015). The Effect of Changes in Earning Per Share, Debt to Equity Ratio, and Company Size. 2, 444-455.
Widia, N. (2021). Indonesia Banking School. 1-13.
Antoro, W., Sanusi, A., & Asih, P. (2020). The Effect of Profitability, Company Size, Company Growth on Firm Value Through Capital Structure in Food and Beverage Companies on the Indonesia Stock Exchange 2014-2018 Period. International Journal of Advances in Scientific Research and Engineering, 06(09), 36-43. https://doi.org/10.31695/ijasre.2020.33876
Ander, K. L. (2021). The Effect of Cash Flows and Accounting Profits on Share Return in Manufacturing Companies on The IDX. EMBA Journal Vol. 9 No. 1 January 2021, pp. 764-775. 9(1), 764-775.
Ayu, S., Nurmalasari, D., & Yulianto, A. (2015). Analysis of the Effect of Changes in Cash Flow on Stock Returns. 4(4), 289-300.
Bintara, R., Wahyudi, S. M., & . M. (2020). Analysis of Fundamental Factors on Stock Price. International Journal of Academic Research in Accounting, Finance and Management Sciences, 9(4), 169-181. https://doi.org/10.6007/ijarafms/v9-i4/6813
Destriana, N. (2015). The Effect of Debt to Equity Ratio, Dividends, and Non-Financial Factors on Agency Cost. 17(2), 125-133.
Dwintya, B., & Ramanda, C. (2021). The Effect of Cash Flow and Accounting Lab on Stock Returns.Sekolah Tinggi Ilmu Ekonomi Indonesia (STIESIA) Surabaya.
Febrianti, F. D., Sugiyanto, S., & Fitria, J. R. (2020). Green Intellectual Capital Conservatism Earning Management, to Future Stock Return as moderating Stock Return (Study of Mining Companies in Indonesia Listed on IDX for the Period of 2014-2019). The Accounting Journal of Binaniaga, 5(2), 141. https://doi.org/10.33062/ajb.v5i2.407
Godfrey. (2020). 22 Effect of Stock Return. Multimedia Nusantara University. 2010, 22-79.
Halawa & Harianja, H. (2022). The Effect of Operating Cash Flow and Accounting Profit on Stock Returns in Lq- 45 Companies on the Indonesia Stock Exchange for the 2018-2020 Period. Jurnal Neraca Agung, 12(2), 24. https://doi.org/10.46930/neraca.v12i2.2761
Helia, S., Putra, E. E., & Hidayati, H. (2020). Firm Size and Price Book Value Impact on Stock Return: Evidence from the Indonesian Stock Exchange. Budapest International Research and Critics Institute-Journal (BIRCI-Journal), Volume 3, 2567a-2567i. www.bircu-journal.com/index.php/birci
Harahap, B., & Effendi, S. (2020). Manufacturing Companies Listed on the IDX for the 2014-2019 Period.5(1), 1-11.
Idris, H., & Idrus, M. (2021). The Effect of Net Cash Flow and Accounting Profit on Stock Returns. YUME: Journal of Management, 4(2), 1-18. https://doi.org/10.37531/yume.vxix.354
Jalil, M. (2020). Stock Returns on Food and Beverage Companies. S. 9(2), 23-34.
Kai, K. De, & Rahman, I. B. A. (2018). The Impact of Financial Indicators towards Stock Returns of Finance Companies Listed on Bursa Malaysia. International Journal of Academic Research in Accounting, Finance and Management Sciences, 8(3), 128-140. https://doi.org/10.6007/ijarafms/v8-i3/4546
Khan, B., Tahir, M., Nasir, A. M., & Mushtaq, M. (2019). The impact of companies' internal factors on stock liquidity in Pakistan. Afro-Asian Journal of Finance and Accounting, 9(4), 459-473. https://doi.org/10.1504/AAJFA.2019.102983
Kunaidi. (2022). The Effect of Operating Cash Flow and Accounting Profit on Stock Returns in Lq- 45 Companies on the Indonesia Stock Exchange for the 2018-2020 Period. Jurnal Neraca Agung, 12(2), 24. https://doi.org/10.46930/neraca.v12i2.2761
Kurnia, D. (2022). Can Company Value Moderate Stock Return: Evidance Southeast Asia Banking. 2(1), 62-73.
Kurniyawati, I. (2022). The Effect of Earnings Management on Stock Returns with Audit Quality as a Moderating Variable (Empirical study of manufacturing companies in the consumer goods industry sector listed on the Indonesia Stock Exchange (IDX) in 2017-. 151-165.
Martiani, V. M., & Nurmala, P. (2022). The Effect of Investment Cash Flow, Operating Cash Flow, and Market Value Added on Stock Returns. 12(2), 107-120.
Mutiara, P., Adhirajasa, U. (2022). The effect of accounting earnings and cash flow on stock returns. 16(2), 109-117.
Ndaru, I. (2023). Volume 20 Issue 1 (2023) Pages 160-168 PERFORMANCE: Journal of Economics and Management ISSN: 1907-3011 (Print) 2528-1127 (Online) Effect of operating cash flow, net profit margin, price to book value, debt to asset ratio, and current ratio on return s. 20(1), 160-168.
Nursita, M. (2021). The Effect of Accounting Profit, Operating Cash Flow, Investment Cash Flow, Funding Cash Flow, and Company Size on Stock Returns. 16(1), 1-15.
Odiningrum, G. P., & Davianti, A. (2021). Operating Activity Cash Flow and Funding Cash Flow on Stock Returns in Manufacturing Companies in the Goods and Consumption Industry Sector Listed on the IDX Introduction. 5 (April), 91-99.
Prima, E. (2018). The Effect of Cash Flow on Changes in ..., Eko Prima Gultom, Ak.-Ibs, 2018.
Purnamaningsih, & Wirawati, I. G. P. (2014). The Effect of Return on Asset, Capital Structure, Price to Book Value and Good Corporate Governance on Stock Returns.Faculty of Economics and Business, Udayana University (Unud), Bali, Indonesia. 1, 1-16.
Putri Pratiwi, I. U., & Muliasari, I. (2021). Journal of Accounting, Taxation and Auditing. 2(2), 452-469.
Sidarta, A. L., Irma, A., & Lating, S. (2020). The Effect of Financial Performance of Public Companies on Stock Returns during the Covid-19 Pandemic. On Companies Listed on the IDX in 2020). 19, 25-36.
Sulaiman, & Suriawinata, I. S. (2020). Analysis of the Effect of Accounting Profit, Operating Cash Flow, Funding Cash Flow, Debt to Equity Ratio, Current Ratio and Stock Risk on Stock Returns. 29(01), 90-107.
Suputra Dana, S. P. and N. P. R. G. (2018). Warmadewa Economic Development Journal. 1(1), 41-48.
Suaryana, I. G. N. A. (2015). The Effect of Changes in Earning Per Share, Debt to Equity Ratio, and Company Size. 2, 444-455.
Widia, N. (2021). Indonesia Banking School. 1-13.
Published
2025-05-26
How to Cite
DEWI, Ni Kadek Tarisma; WIRAWATI, Ni Gusti Putu.
Impact of Cash Flow and Profit on Stock Returns of IDX-Listed Pharmaceutical Companies.
E-Jurnal Akuntansi, [S.l.], v. 35, n. 5, may 2025.
ISSN 2302-8556.
Available at: <https://ojs.unud.ac.id/index.php/akuntansi/article/view/114846>. Date accessed: 15 oct. 2025.
doi: https://doi.org/10.24843/EJA.2025.v35.i05.p07.
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