Firm-Specific Determinants of Stock Prices in the Post-Pandemic Era

Ardyan Firdausi Mustoffa; Ika Farida Ulfah; Wijianto Wijianto

doi:10.33395/owner.v9i4.2801

Authors

Ardyan Firdausi Mustoffa Universitas Muhammadiyah Ponorogo
Ika Farida Ulfah Department of Economics, Universitas Muhammadiyah Ponorogo, Indonesia
Wijianto Department of Economics, Universitas Muhammadiyah Ponorogo, Indonesia

DOI:

10.33395/owner.v9i4.2801

Keywords:

cash flow, profit, firm size, capital structure, stock price, manufacturing sector

Abstract

Purpose—This study aims to analyze the influence of firm-specific factors—specifically Cash Flow, Profitability, Firm Size, and Capital Structure—on the Stock Prices of consumer manufacturing firms listed on the Indonesia Stock Exchange (IDX). This sector is strategically vital due to its substantial contribution to the national Gross Domestic Product (GDP), yet its stocks frequently face challenges related to volatility and price decline, raising critical questions about which fundamental signals are most effectively received and acted upon by the market. Design/Methodology—Employing a multiple linear regression method, this research utilizes secondary data from annual financial reports covering the period 2019 to 2024. The novelty lies in its comprehensive simultaneous analysis of these four fundamental variables in this sector, specifically emphasizing the differential signaling effect between Cash Flow and Profitability. Findings—Partial test results indicate that Cash Flow from Investing Activities/CFI and Firm Size have a positive and significant effect on Stock Prices. This suggests that investors perceive Cash Flow as a more reliable signal of a company's financial health than Profitability, which was found to be partially insignificant. Simultaneously, all four variables collectively demonstrate a significant effect on Stock Prices. Conclusion—In the Indonesian market context, Cash Flow from Investing Activities/ CFI and Firm Size are the key factors that command the most attention from investors in their investment decision-making processes within the consumer manufacturing sector

Downloads

Download data is not yet available.

Plum-X Analityc

References

Andriyanty, S. (2020). The influence of cash flow and earnings on stock prices: A study on manufacturing companies listed on the Indonesia Stock Exchange for the period 2014–2018 [Undergraduate thesis, STIE STAN Bandung Repository]. http://epub.imandiri.id/repository/docs/TaSkripsi/Skripsi%20Santy%20Andriyanty_371763009.pdf

Anggraeni, F., & Purwaningsih, E. (2022). The effect of return on assets, earnings per share, and total cash flow on stock prices. Jurnal Proaksi, 7(1), 95–103.

Asiah, N., & Yeni, S. M. (2020). The influence of accounting profit and operating cash flow on stock prices in the miscellaneous industry sector companies on the Indonesia Stock Exchange. Jurnal Akuntansi Bisnis Pelita Bangsa. https://journal.lppm-pelitabangsa.id/index.php/akubis/article/view/105/47

Badan Pusat Statistik (BPS). (2023). Indonesia’s economy in Q4 2023 grew by 5.04 percent (YoY) [Press release]. BPS Statistics Indonesia. https://www.bps.go.id/id/pressrelease/2024/02/05/2379/ekonomi-indonesia-triwulan-iv-2023-tumbuh-5-04-persen–y-o-n-y-.html

Bisnis.com. (2023, October 20). Realisasi investasi manufaktur kuartal III 2023 tembus Rp1,637 triliun [Realization of manufacturing investment in Q3 2023 reached Rp1,637 trillion]. Bisnis Ekonomi. https://ekonomi.bisnis.com/read/20231020/257/1706212/realisasi-investasi-manufaktur-kuartal-iii2023-tembus-rp1637-triliun

Bisnis.com. (2024, July 29). Realisasi investasi manufaktur menguat 24,6% pada semester I-2024 [Manufacturing investment realization strengthened by 24.6% in the first half of 2024]. Bisnis Ekonomi. https://ekonomi.bisnis.com/read/20240729/257/1786395/realisasi-investasi-manufaktur-menguat-246-pada-semester-i2024

Bisri, A., Suripto, S., & Sugiyanto, S. (2023). The role of firm size in moderating the effect of capital structure and total cash flow on stock prices in consumer goods industry companies. Owner: Riset dan Jurnal Akuntansi, 7(3), 2719–2730. https://owner.polgan.ac.id/index.php/owner/article/view/1759

Evania, L., Goreti, M., & Indarti, K. (2022). The effect of capital structure, company size, company growth, and profitability on stock prices of manufacturing companies listed on the Indonesia Stock Exchange. Jurnal Ilmiah Akuntansi dan Keuangan, 5(4). https://journal.ikopin.ac.id/index.php/fairvalue

Ghozali, I. (2021). Aplikasi analisis multivariate dengan program IBM SPSS 25. Badan Penerbit Universitas Diponegoro.

Hartono, J. (2015). Portfolio theory and investment analysis (5th ed.). BPFE.

Iman, M. F. N., & Norsita, M. (2022). The effect of net income, current ratio, and cash flow on stock prices of food and beverage companies. Akuntabel: Jurnal Ekonomi dan Keuangan, 19(2), 393–398.

Inten, D. A. R., & Sijabat, D. R. P. S. (2022). The effect of net income and firm size on stock prices in consumer goods manufacturing companies listed on the Indonesia Stock Exchange (2015–2019). Jurnal Akuntansi dan Bisnis Krisnadwipayana, 9(1), 549–558.

Marbun, J. N. B. (2024). The effect of operating cash flow and sales growth on stock prices in consumer goods industry companies listed on the Indonesia Stock Exchange in 2019–2020 [Undergraduate thesis, Universitas Medan Area]. https://repositori.uma.ac.id/jspui/bitstream/123456789/26307/1/188330233%20-%20Josua%20Nico%20Benediktus%20Marbun%20-%20Fulltext.pdf

Melinda, H. S., & Dewi, S. (2023). The effect of net income, firm size, capital structure, and liquidity on stock prices in food and beverage subsector manufacturing companies. Akurasi: Jurnal Riset Akuntansi dan Keuangan, 5(3), 261–274. https://www.e-journal.imperiuminstitute.org/index.php/AKURASI/article/view/1027

Muchran, M., & Fajrin, A. (n.d.). The effect of cash flow on stock prices in manufacturing companies on the Indonesia Stock Exchange (2015–2018). Jurnal AJAR. https://ojs.feb.uajm.ac.id/index.php/AJAR/article/view/103

Myers, S. C. (1984). The capital structure puzzle (No. 35). National Bureau of Economic Research (NBER).

Nur Halimah, T. S., & Sulfitri, V. (2024). Comparative analysis of the composite stock price index (IHSG) value across eight industrial sectors listed on the Indonesia Stock Exchange for the 2019–2022 period (COVID vs. post-COVID). Jurnal Ekonomi Trisakti, 4(2). https://www.researchgate.net/publication/383598920

Pasaribu, A. G., Manurung, N., & Butarbutar, N. H. (2021). The effect of cash flow on stock prices in food and beverage manufacturing companies listed on the IDX. Jurnal Riset Akuntansi Multiparadigma, 8(1). http://download.garuda.kemdikbud.go.id/article.php?article=2440869&val=23339&title=Pengaruh%20Arus%20Kas%20Terhadap%20Harga%20Saham%20pada%20Perusahaan%20Manufaktur%20Sub%20Sektor%20Makanan%20dan%20Minuman%20yang%20Terdaftar%20di%20BEI

Putri, F. A. (2020). The effect of cash flow components and net income on stock prices in manufacturing companies listed on the Indonesia Stock Exchange [Undergraduate thesis, Sekolah Tinggi Ilmu Ekonomi Yayasan Keluarga Pahlawan Negara, Yogyakarta]. http://repositorybaru.stieykpn.ac.id/2913/

Santy, A., & Ferdiansyah, R. (2021). The effect of cash flow and net income on stock prices. STIE STAN Indonesia Mandiri Journal. http://e-pub.imandiri.id/repository/docs/journal/Journal%20skirpsi%20Santy%20Andriyanty_371763009.pdf

Saribu, A. D., Bonifasius, T., & Meysin, R. (2022). The effect of cash flow components and gross profit on stock prices. Journal of Economic and Business, 4(2), 35–44. https://jurnal.uhn.ac.id/index.php/ekonomibisinis/article/view/752

Setyaningsih, A. N. (2023). The effect of capital structure, profitability, and firm size on stock prices of food and beverage manufacturing companies. Jurnal Akuntansi dan Keuangan Kontemporer (JAKK), 6(1), 87–94. https://jurnal.umsu.ac.id/index.php/JAKK/article/view/14518/pdf

Silalahi, E., Sitorus, R. P., & Pratiwi, A. (2022). The effect of capital structure, liquidity, and firm size on stock prices of manufacturing companies listed on the Indonesia Stock Exchange. Jurnal Riset Akuntansi dan Keuangan, 8(1). https://e-journal.ust.ac.id/index.php/JRAK/article/view/1757

Sugiyono. (2019). Quantitative and qualitative research methodology and R&D. Alfa Beta.

Wahyuni, W. (2022). The effect of capital structure, firm size, and profitability on stock prices of food and beverage companies listed on the Indonesia Stock Exchange [Undergraduate thesis, Universitas Pembangunan Nasional Yogyakarta]. https://eprints.upnyk.ac.id/32612/1/Skripsi%20Full.pdf

Yuliana, T., & Rismansyah. (2019). The effect of net income and cash flow on stock prices in consumer goods manufacturing companies listed on the Indonesia Stock Exchange. Jurnal Manajemen dan Investasi (Manivestasi), 1(1).