The Effect of Profitability, Solvency, Cash Flow on Stock Returns
DOI:
https://doi.org/10.69989/5mwhf481Keywords:
Cash flow, profitability, stock returns, solvencyAbstract
The government's policy to implement the downstreaming of energy and raw materials from mining is not merely a fabrication. The government is progressively and sustainably enforcing the policy to cease the export of mineral resources, including nickel, tin, alumina, and bauxite. In 2022, Indonesia's export value in the mining sector and other sectors amounted to US$ 64.919 billion, reflecting a 71.22 percent rise compared to 2021, demonstrating the effectiveness of the nickel ore export ban policy enacted in 2020. The recent downstreaming, particularly in mining and the establishment of processing facilities, has prompted increased investor interest. The shares of mining industry companies are expected to exhibit long-term financial improvement. This study employs a quantitative research design to ascertain the impact of profitability, solvency, and cash flow variables on the energy and basic materials sector within companies listed on the Indonesia Stock Exchange (IDX) during the periods of 2019 and 2022, specifically those included in the LQ45 index in 2023. The research findings indicate that cash flow and profitability impact stock returns, but solvency exerts little influence.
Downloads
References
Almaskati, N., Bird, R., Yeung, D., & Lu, Y. (2023). Corporate governance, market conditions and investors’ reaction to information signals. Australian Journal of Management, 48(1), 38–66. https://doi.org/10.1177/03128962221096492
Butler, A. (2007). Capital market resources as a source of financing for the real sector of the economy. Voprosy Ekonomiki, 2007(11), 92–103. https://doi.org/10.32609/0042-8736-2007-11-92-103
Faizah, L. N., & Ermalina, S. E. (2021). Pengaruh DER, EPS, ROA, dan Market Share Terhadap Return Saham pada Perusahaan Pertambangan yang Terdaftar di BEI Periode 2015-2019. Institut Teknologi dan Bisnis Ahmad Dahlan Jakarta.
Gao, W. (2024). Cash flow duration and market reactions to earnings announcements. Review of Quantitative Finance and Accounting, 63(2), 679–714. https://doi.org/10.1007/s11156-024-01269-1
Ghozali, I. (2011). Multivariate Analysis Application with SPSS 20 . Program. badan penerbit universitas diponegoro.
Japlani, A. (2020). Pengaruh Perubahan Laba Akuntansi, Arus Kas Operasi, Arus Kas Investasi Dan Arus Kas Pendanaan Terhadap Return Saham. FIDUSIA: Jurnal Keuangan Dan Perbankan, 3(2).
Krausert, A. (2009). Workforce functions. In Contributions to Management Science (pp. 13–103). https://doi.org/10.1007/978-3-7908-2197-0_2
Krustiyati, A., & Gea, G. V. V. (2023). The Paradox of Downstream Mining Industry Development in Indonesia: Analysis and Challenges. Sriwijaya Law Review, 7(2), 335–349. https://doi.org/10.28946/slrev.Vol7.Iss2.2734.pp335-349
Lalu, R. K., Suriyantari, E. P., & Artaningrum, R. G. (2024). Pengaruh Ukuran Perusahaan dan Profitabilitas terhadap Return Saham pada Perusahaan Manufaktur Sub Sektor Otomotif dan Komponen. JAKADARA: JURNAL EKONOMIKA, BISNIS, DAN HUMANIORA, 3(3), 135–144.
Liu, H., & Krystyniak, K. (2021). Investor Attention and Merger Announcements. Journal of Behavioral Finance, 22(1), 97–112. https://doi.org/10.1080/15427560.2020.1748632
Mayuni, I. A. I., & Suarjaya, G. (2018). Pengaruh ROA, FIRM SIZE, EPS, dan PER terhadap return saham pada sektor Manufaktur di BEI. Udayana University.
Nurmalasari, S. A. D., & Yulianto, A. (2015). Analisis pengaruh perubahan arus kas terhadap return saham. Management Analysis Journal, 4(4).
Olowookere, A. E., & Ogebe, J. O. (2019). Impact of capital market financing on Nigeria’s industrial performance: An empirical analysis. Nigerian Journal of Economic and Social Studies, 61(1), 1–22.
Pradnyaningsih, N. W. A., & Suarjaya, A. A. G. (2022). Pengaruh faktor fundamental perusahaan terhadap return saham. E-Jurnal Manajemen Universitas Udayana, 11(7), 1377.
Suwardjono, T. A. (2005). Perekayasaan Pelaporan Keuangan. Yogyakarta: Bpfe.
Zaki, M. R. S., Armanto, M. H., Albar, R. A. H., & Koos, S. (2023). Safeguarding Sovereignty: Indonesia’s Solution to the Raw Materials Case in WTO. Indonesian Journal of International Law, 20(4), 725–752. https://doi.org/10.17304/ijil.vol20.4.5
Zheng, J. (2024). Institutional attention and investment efficiency. Accounting and Finance, 64(4), 3241–3273. https://doi.org/10.1111/acfi.13250
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Lano Arintaka, Novita Nugraheni (Author)
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Copyright Notice
An author who publishes in the journal "Jurnal Ilmiah Ekotrans & Erudisi" agrees to the following terms:
Author retains the copyright and grants the journal the right of first publication of the work simultaneously licensed under the Creative Commons Attribution-ShareAlike 4.0 License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal
Author is able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book) with the acknowledgement of its initial publication in this journal.
Author is permitted and encouraged to post his/her work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of the published work (See The Effect of Open Access).
All materials in this site are protected by the law. It is prohibited to quote a part of or all of this website contents for commercial purposes without the permission or consent of the editors.
If anyone finds one article or more in this journal violate or potentially violate one’s copyrights, please report to us through e-mail of Principle Contact.
Legal-formal aspects of accessing any information and manuscript in this journal website refer to the provision of license Creative Commons Attribution-Share Alike (CC BY-SA). Read more about the Creative Commons Attribution-ShareAlike 4.0 Licence here: https://creativecommons.org/licenses/by-sa/4.0/.
All information available in 'Jurnal Ilmiah Ekotrans & Erudisi' is academic in nature. 'Jurnal Ilmiah Ekotrans & Erudisi' is not responsible for loss due to the abuse of information in the website.
Information
Notice about change in the copyright policy of the journal 'Jurnal Ilmiah Ekotrans & Erudisi' : "From Volume 1, Nomor 1 onwards the copyright of the article published in the journal 'Jurnal Ilmiah Ekotrans & Erudisi' will be retained by the author"
Privacy Statement
The names and email addresses entered in this journal site will be used exclusively for the stated purposes of this journal and will not be made available for any other purpose or to any other party.
How to Cite
