The Effect of the Cash Flows, Gross Profit and Company Size on Indonesian Stock Returns (A Study on the Chemical and Basic Industry Companies During the Periods of 2009-2014)

International Journal of Applied Business and Economic Research, Vol. 14(3), 2016

Posted: 15 Jun 2016

See all articles by Rihfenti Ernayani

Rihfenti Ernayani

Universitas Balikpapan

Robiyanto Robiyanto

Satya Wacana Christian University

Date Written: June 14, 2016

Abstract

This study aims to test empirically the effect of the cash flows (the operating cash flow; the investment cash flow; and the financing cash flow), gross profit, and company size towards the Indonesian chemical and basic industry companies’ stock returns. The results showed that in partial the operating cash flow, financing cash flow, gross profit and the size of the company have an effect on stock returns, while the investment cash flow has no effect on stock returns. The results also showed that the cash flows, gross profit and the size of the company have an effect on stock returns simultaneously.

Keywords: Operating Cash Flow, Investment Cash Flow, Financing Cash Flow, Gross Profit, Company Size

JEL Classification: G3

Suggested Citation

Ernayani, Rihfenti and Robiyanto, Robiyanto, The Effect of the Cash Flows, Gross Profit and Company Size on Indonesian Stock Returns (A Study on the Chemical and Basic Industry Companies During the Periods of 2009-2014) (June 14, 2016). International Journal of Applied Business and Economic Research, Vol. 14(3), 2016, Available at SSRN: https://ssrn.com/abstract=2795657

Rihfenti Ernayani (Contact Author)

Universitas Balikpapan ( email )

Jl. Pupuk Raya, Gunung Bahagia
Balikpapan, Kalimantan Timur
Indonesia

Robiyanto Robiyanto

Satya Wacana Christian University ( email )

Diponegoro Street 52-60
Salatiga, Central Java 50711
Indonesia

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