The Effect of Accounting Profit, Cash Flow Component and Firm Size toward Stock Price
Debbie Christine, Meiza Azura
University of Widyatama, Department of Accounting
University of Padjadjaran, Doctoral of Accounting Science
The content of the information from the income statement and cash flow derived from operating activities, investing activities and financing activities will affect investor expectations on the prospects of a company, thus causing investors reacted to purchase or sell shares in order to optimize profits. The purpose of this study was to determine whether the accounting profit, accounting component, and firm size significantly influence stock price.
The method used in this research is the method of causality. The population in this study were some companies LQ 45 listed in the Indonesian Stock Exchange for the period 2010-2014. Sample selection technique used in this research was non probability sampling with purposive sampling method in certain companies. Test analysis used in this research is descriptive statistics, the classic assumption test, panel data regression, and goodness of fit.
The results of this study partially showed that accounting profit significantly effect stock price, cash flow from operating activities have no significant effect on stock price, cash flow from investing activities no significant effect on stock price, cash flow from financing activities significantly effect stock price, firm size significantly effect stock price. Simultaneously accounting profit, cash flow component, and firm size have a significant effect toward stock price.
Topic: Economic and Finance in Education