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 and Licensing Notice
Authors publishing in Jurnal Ilmiah Ekotrans & Erudisi (JIEE) retain copyright over their original scholarly works and grant the journal the right of first publication. Published articles are distributed under the Creative Commons Attribution-ShareAlike 4.0 International License (CC BY-SA 4.0).
Under this license, users are permitted to copy, redistribute, share, reproduce, translate, adapt, and build upon the licensed material for any lawful purpose, including commercial use, provided that appropriate credit is given to the original author(s), the initial publication in JIEE is acknowledged, a link to the license is provided, and any modifications are indicated. When adapted material is shared, the adaptation must comply with the applicable ShareAlike licensing requirements.
No additional permission from the authors or the journal is required for uses authorized by CC BY-SA 4.0. Users must not impose additional legal restrictions or technological measures that prevent others from exercising the rights granted by the license.
Authors may enter into separate, additional non-exclusive arrangements for the distribution of their published work, including deposit in institutional repositories, scholarly repositories, and academic websites, provided that the original publication in JIEE is appropriately acknowledged and the applicable licensing terms are respected.
Third-party materials that are expressly excluded from the article's Creative Commons license remain subject to their respective copyright and permission requirements. The license does not override applicable privacy, personality, or other rights.
For copyright-related inquiries or reports of possible infringement, please contact the JIEE Editorial Office.
Official License: https://creativecommons.org/licenses/by-sa/4.0/
