Institusion
STIE Indonesia Banking School
Author
Purwanto, Ditya Amanda Angela
Subject
HF5601 Accounting
Datestamp
2024-07-18 02:33:13
Abstract :
Capital market is a place for public to invest their excess funds in various
financial assets to earn return. The investments decision, therefore, must always
be considered in terms of both risk and return. The larger risk is had by
securities, the larger return will he expected. Investors need the information
which has related with the investment to know the security's risk and expected
return. One of the information is financial statement. The purpose of this
research is to examine whether net income and cash flow components are
influence significantly expected return of company's stoclc. This research used the
LQ45 population in period of 2004, 2005, and 2006. This research used multiple
regression analysis to examine the influence of net income and cash flow
components on expected return. The result of this research indicates net income
influence expected return significantly and cash flow components do not
influence expected return.
Keywords: net income, cash flow from operation, cash flow from investing, cash
flow from financing, and expected return.