scholarly journals The impact of cash flow statement components on stock volatility: Evidence from Qatar

2021 ◽  
Vol 18 (2) ◽  
pp. 365-373
Author(s):  
Mo’taz Kamel Al Zobi ◽  
Othman Hel Al-Dhaimesh
Keyword(s):  
Stock Returns ◽  
Cash Flow ◽  
Stock Prices ◽  
Financial Statements ◽  
Cash Flows ◽  
Significant Information ◽  
Stock Volatility ◽  
Study Results ◽  
Cash Flow Statement ◽  
The Impact

The published financial statements are considered one of the most important sources of information that investors rely on in forecasting stock performance or even judging the organization’s ability to cover short-run liabilities. Cash flows play a core role in maintaining a high market value for its shares. Hence, this study came to analyze the explanatory value of the cash flow statement in explaining stock volatility (SV) in the Qatar financial market. Study data were collected using published financial statements from a sample of 44 Qatari-listed companies throughout 2013–2019. A panel cross-sectional data technique using the E-views program was used to analyze the data. The study results show there is a positive and significant impact of cash flows from operating CFO activities on SV, indicating that the higher change in CFO increases stock volatility. This means that operating cash flows give significant information to investors, and it is reflected in the stock price movements directly. Also, the cash flow from CFF financing activities has a positive and significant effect on SV. This means that CFF affects stock prices, causing greater changes and fluctuation in stock returns. This is because one of the major components of CFF is dividends, which affect directly stock prices and stock returns. In contrast, there is an insignificant effect of CFI on SV, which may indicate that investors do not build their investment decisions based on CFI. Accordingly, the cash flow from investing activities failed to explain the stock volatility of the listed Qatari companies.

scholarly journals FACTORS AFFECTING OPERATING CASH FLOW TO STOCK RETURN THROUGH STOCK PRICE

2018 ◽  
Vol 5 (2) ◽  
Author(s):  
Aprih . Santoso
Keyword(s):  
Stock Returns ◽  
Cash Flow ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Return ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Financial Statements ◽  
Manufacturing Companies ◽  
Operating Cash Flow

Abstract : Companies need funds in order to carry out operations such as the financing of production activities, pay employees, pay other expenses related to the operation of the company. One way to obtain these funds is to attract investors to invest in companies in the form of stock, but in making this investment is certainly not easy for investors, because investors need consideration beforehand to find out how the company's performance. The purpose of this study was to examine and analyze the effect of operating cash flow to stock return through stock price at companies listed on the Stock Exchange Year 2012-2015. The data used in this study dala are secondary data from the financial statements of companies listed on the Indonesia Stock Exchange period 2012 - 2015. The data are in the form of financial statements can be obtained from the Indonesian Capital Market Directory (ICMD), the IDX website www.idx.co. id as well as from various other sources to support this research. The population in this research is manufacturing companies listed on the Stock Exchange the period 2012 - 2015. The samples taken by the sampling technique used purposive sampling.From the test results and analysis of the data it can be concluded that operating cash flow directly and indirectly has no effect on stock returns through stock prices showed no significant results. Keywords :  Operating Cash Flow, Stock Price, Stocks Return

scholarly journals Reaksi Investor Atas Relevansi Informasi Arus Kas Dan Laba Akrual pada Laporan Keuangan Perusahaan

2021 ◽  
Vol 21 (2) ◽  
pp. 575
Author(s):  
Muhammad Imam Sundarta ◽  
Azolla Degita Azis ◽  
Anggita Citra Dewi
Keyword(s):  
Stock Returns ◽  
Cash Flow ◽  
Stock Exchange ◽  
Secondary Data ◽  
Cash Flows ◽  
Financial Reports ◽  
Earnings Information ◽  
Income Statement ◽  
Analysis Technique ◽  
Cash Flow Statement

This study aims to determine whether cash flows and accrual earnings affect on stock returns that contained information about investors reaction in manufacturing industries on the Indonesia Stock Exchange from the 2013-2017 period. This research is a quantitative study using secondary data in the form of financial reports. The data analysis technique used is multiple regression analysis. The results of this study indicate that the cash flow statement has no effect on stock returns, while accrual earnings have a positive effect on stock returns. This finding can be one of the additional literature in the field of financial accounting because investors see the earnings information contained in the income statement compared to the cash flow statement that is reflected in stock returns.

scholarly journals EFFECT OF INFORMATION ON ACCOUNTING PROFITS AND CASH FLOW COMPONENTS ON STOCK PRICES OF INSURANCE COMPANIES LISTED IN INDONESIA STOCK EXCHANGE (BEI) 2008-2012 PERIOD

2019 ◽  
Vol 15 (2) ◽  
pp. 171
Author(s):  
Nico Lukito ◽  
Kristian Chandra
Keyword(s):  
Interest Rates ◽  
Cash Flow ◽  
Stock Prices ◽  
Stock Exchange ◽  
Financial Statements ◽  
Cash Flows ◽  
Insurance Companies ◽  
Research Model ◽  
Accounting Earnings ◽  
Independent Variables

<p><em>Many factors influence the fluctuation of stock prices, including: deposit interest rates, stock trading volume, return on equity, earnings per share. The last two factors are part of the financial statements presented by the issuers. The financial statements contain accounting earnings information and cash flow. Therefore it is necessary to examine empirically whether accounting earnings and cash flows have an influence on changes in stock prices. Data is collected from the stock prices of insurance companies that have gone public in the Jakarta Stock Exchange which have a nominal value per share of Rp.1,000.00 (one thousand rupiah) from 2008 to 2012. This study took 10 existing insurance companies to analyze. The basis for this sampling is based on the amount of data available on the Jakarta Stock Exchange Website. From the results of variable analysis of total cash flow and accounting profit variables in the first equation individually can not significantly influence stock prices. And together all the independent variables have no effect simultaneously on stock prices. The value of Squared R is very low, which means that the variable cannot explain stock prices, but can be explained by other variables not included in the research model. Variable operational cash flows, investment cash flows and funding cash flows in the second equation individually can not influence stock prices significantly. And together all the independent variables have no effect simultaneously on stock prices. Also obtained is a very low R Squared value, which means that the variable cannot explain stock prices, but can be explained by other variables not included in the research model</em></p>

Voluntary Income Reporting

2014 ◽  
Vol 28 (2) ◽  
pp. 277-295
Author(s):  
Philip Beaulieu
Keyword(s):  
Cash Flow ◽  
Value Relevance ◽  
Direct Method ◽  
Cash Flows ◽  
Information Value ◽  
Fund Flows ◽  
Litigation Risk ◽  
Significant Information ◽  
Income Reporting ◽  
Cash Flow Statement

SYNOPSIS This paper proposes a voluntary income-reporting regime, in which firms could choose whether to publish an income statement. Firms choosing not to issue it would report fund flows in a cash flow statement employing the direct method, similar to the cash flow statement advocated by Ohlson et al. (2010). Voluntary income reporting is motivated by managers' numerous motives to manipulate earnings, recent research challenging the value relevance of earnings compared to cash flows, and costs of auditing income, including litigation risk. Another motivation for voluntary income reporting is rising investor dissatisfaction with reported earnings, but unlike many critics in the investing community, the paper does not claim that earnings do not have significant information value. Rather, given recent developments, it is worth reconsidering whether the benefits of reporting accrual earnings exceed the costs for all firms.

The effect of financial analysts on the economic implications of disclosed lease information – a note

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Su-Jane Hsieh ◽  
Yuli Su
Keyword(s):  
Stock Returns ◽  
Cash Flow ◽  
Stock Prices ◽  
Predictive Value ◽  
Financial Analysts ◽  
Financial Analyst ◽  
Analyst Following ◽  
Analyst Coverage ◽  
Content Type ◽  
The Impact

PurposeThe purpose of this paper is to investigate whether financial analyst coverage affects the dissemination of disclosed operating lease information into cash flow predictions and stock prices.Design/methodology/approachThe difference in lease expense between capital/finance lease and operating lease reporting is estimated based on the approach in Hsieh and Su (2015). This difference is referred to as the earnings impact from operating lease capitalization and is only available from footnotes. The authors then include the level of financial analyst following in a cash flow model to study its impact on the cash flow predictive value of the earnings impact. Similarly, the level of financial analyst following is inserted in an earnings-return model to assess the effect of analyst coverage on the association between contemporaneous stock returns and earnings impact.FindingsThe authors find that the cash flow predictive value of the earnings impact shifts to the interaction between analyst coverage and the earnings impact, suggesting that the decision-usefulness of the earnings impact is conditioned on the level of analyst following. Nevertheless, the authors find that the earnings impact continues to have explanatory value for the contemporaneous stock returns, while the interaction between analyst coverage and the earnings impact does not. This finding suggests that the earnings impact is already fully reflected in stock prices regardless of analyst following.Research limitations/implicationsSince the estimation of the earnings impact from reporting operating leases as capital leases is based on the method developed by Imhoff et al. (1991), the results and inferences are thus constrained by the validity of the method.Practical implicationsThe authors find that financial analyst activities accelerate the incorporation of the earnings impact from operating lease capitalization in cash flow predictions, but it does not promote the impounding of the earnings impact into stock prices. This finding suggests that financial analysts' influence on the dissemination of the earnings impact hinges on the type of economic activity, and failing to consider the financial analyst following in studying the cash flow predictive value of the earnings impact would obscure the findings.Originality/valueThe authors extend the findings of prior research that financial analysts' activities promote the incorporation of firm-specific information into stock prices by investigating the impact of financial analysts on the dissemination of disclosed operating lease information.

scholarly journals Pengaruh Kandungan Informasi komponen Laporan Arus Kas, Laba Akuntansi Dan Size Perusahaan Terhadap Return Saham Pada Perusahaan Consumer Good di Bursa Efek Indonesia

2020 ◽  
Vol 8 (4) ◽  
Author(s):  
Laila Zulviana
Keyword(s):  
Data Analysis ◽  
Stock Returns ◽  
Cash Flow ◽  
Consumer Goods ◽  
Stock Return ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Cash Flows ◽  
Company Size ◽  
The Impact

This study aims to examine the impact of the information content component of the cash flow statements, accounting profit, and company sizes on stock returns in consumer goods companies listed on the Indonesia Stock Exchange in the 2014-2017 period. The population in this study are corporations listed on the Indonesia Stock Exchange, specifically consumer goods companies. The sample were obtain by purposive sampling method. There are 30 companies that match the criteria. The data analysis was contucted using SPSS version 22. The technique of data analysis was descriptive statistics, classic assumption tests, hypothesis testing utilising multiple linear regression analysis. The research findings explicated several discoveries such as the following : 1) Operating cah flow has a negative and no significant effect on stock return, 2) Investment cash flow holds a positive and not significant effect on stock return, 3) Funding cash flow have a positive and not significant on effect stock return, 4) Accounting profit has a negative and no significant on effect return stock, 5) The size of the company has a positive and significant effect on stock return. The limitations of this study were that the adjusted R2 examined only had an effect of 13.2%. This shows that the influence of operating cash flows, investment cash flows, funding cash flows, accounting profit and company size on stock return is still very small compared to other factor, which is 86.8% and influenced by other factors which can be examined further. Future research needs to pay attention to other factors such as grofit, ROA and ROE.Keyword : operating cash flow, investment cash flow, funding cash flow, accounting profit, company size, and stock return.

scholarly journals ANALISIS KINERJA PERUSAHAAN BERDASARKAN LAPORAN ARUS KAS PADA PT INDOMOBIL SUKSES INTERNASIONAL TBK

2015 ◽  
Vol 1 (2) ◽  
pp. 63-76
Author(s):  
Arief Tri Hardiyanto ◽  
Stefan Michael Benyamin Bertus
Keyword(s):  
Cash Flow ◽  
Financial Statements ◽  
Cash Flows ◽  
Company Performance ◽  
Financial Condition ◽  
Negative Results ◽  
Cash Flow Statement ◽  
Supporting Device ◽  
Operating Activities

This research discusses the role of the analysis of the cash flow statement as supporting the evaluation of company performance based on cash flow ratio, so that it can be seen in the company's ability to manage cash, either in operating activities, investing activities, and financing activities. The analysis is expected to be useful as a supporting device in the decision making process for users of financial statements for both internal and external parties. Based on the analysis of the cash flow pattern, it can be seen operating activities resulted in net cash the company is negative. Thus the financial condition of PT Indomobil Sukses Internasional Tbk is not good. Cash flows from investing activities yielded negative results, thus the financial condition of PT Indomobil Sukses Internasional Tbk is both a financing cash flow generating net amount of cash flow that is positive. The third explanation pattern of cash flow, it can be concluded that the financial condition of PT Indomobil Sukses Internasional Tbk generally in poor condition. Then, based on the analysis of the cash flow statement, author obtained information that the company has liquidity and solvency levels that are less good. The capital structure of the company has not been sufficiently effective and efficient.Keywords: Analysis of Cash Flow Statement

PENGARUH INFORMASI LABA AKUNTANSI, ALIRAN KAS DAN KOMPONEN ALIRAN KAS TERHADAP HARGA SAHAM PADA PERUSAHAAN MANUFAKTUR DI INDONESIA

2005 ◽  
Vol 1 (2) ◽  
pp. 79
Author(s):  
Ferry Ferry ◽  
Erny Ekawati
Keyword(s):  
Stock Returns ◽  
Cash Flow ◽  
Stock Prices ◽  
Stock Price ◽  
Cash Flows ◽  
Negative Influence ◽  
Positive Influence ◽  
Financial Accounting ◽  
Statement Of Cash Flows ◽  
The One

Brfoo 1994, the one way measurcd pdormance of go public compa4y is earning afier tu, but on September 7, 1994 the Indonesian Institute olAccountants (IAI) published the statement of financial Accounting Standard (PSAK) No.2, "statement of Cash Flows" requires companiesto pubtish the statewent of cash flows beginning from January I, tggs. So investors had two kinds measurement of performance go public companies.The objective of study is to aplain the influence of informationcontent of accounting income, total cash Jlows, and components of cash flow with stock price in lidonesian manufacuring firms The accounting income is earning afiir ta,tc before extra ordinary item and discontinued operations and total cash flows is a sum of cash flow from operating activities, cash llow from investing activities, and cash tlow from financing activities.This study was constitute replicated study from Triyono and Yogiyanto (2000) about the association of information content of total cash flows, components of cash Jlows, and accoun:ting income with stock prices or stock returns. This study took sample frorn manufacnring firms lisfed in the Jakarta Stock Exciange @ni) from 1999-iOOZ tnoT"had pubtished aadited financial statement. Stock prices using monthly prices that hadended December 1999-2002. The statistics method used to test ltypotheses is a linier multiple regression. The model was considered: levek')odet.  The empirical results with using the first model levels about the influ. hence information of accounting income and total cash flows with stock prices can be explained accounting income gave positive influence and significant with stock prices whereas total cash flows gcMe negative and tlgnil*nt with stock prices. In the second model levels about the influ- ,i"i ,nyn *ation of cash flow from operating actiu.ities, cash flow from investing activities, and cash flow from financing octivities with stock pri, i* b" explained, separated total gash fl9ws into.yomponents. of 'cash flows gave negative influence and significant with stock prices "rp"ifolly iash ltoi from aperating octivities and c-ash flow from finincing activities. In the third model levels obout influence information of acciunting income and components of cash Jlows with stock prices irn be expliined, accounting income gave positive inlluence and significont with stock prices whereas companents of cosh tlows gNe negative influence and significant with stock prices'Keywords : accounting Income, cash Flows, components of cashflows, levels model

Minority Interest in the Consolidated Retained Earnings Statement

2001 ◽  
Vol 15 (2) ◽  
pp. 119-146 ◽  
Author(s):  
Hugo Nurnberg
Keyword(s):  
Cash Flow ◽  
Balance Sheet ◽  
Financial Statements ◽  
Cash Flows ◽  
Parent Company ◽  
Consolidated Financial Statements ◽  
Entity Theory ◽  
Income Statement ◽  
Cash Flow Statement ◽  
Retained Earnings

Consolidated financial statements purport to report income, financial position, and cash flows of a parent company and its subsidiaries as if the group were a single company with one or more branches or divisions. Under the parent company theory, the consolidated entity perspective assumed in the consolidated income statement, the consolidated balance sheet, and the consolidated retained earnings statement differs from the consolidated entity perspective assumed in the consolidated cash flow statement. Even under extant expositions of the entity theory, the consolidated entity perspective assumed in the consolidated income statement, the consolidated balance sheet, and the consolidated cash flow statement differs from the consolidated entity perspective assumed in the consolidated retained earnings statement. This paper develops a consistent consolidated entity perspective for all four consolidated financial statements. It demonstrates that under the entity theory, consolidated retained earnings includes the separate equities of both the parent company stockholders and the minority interest. As such, both elements of retained earnings should be reported in the consolidated retained earnings statement to make it comparable to the consolidated retained earnings statement of companies without subsidiaries or with only wholly owned subsidiaries. The effect on certain financial ratios of public companies may be substantial. The paper also demonstrates that for purchased subsidiaries, minority interest in consolidated retained earnings includes unamortized write-ups of identifiable net assets and goodwill arising from purchase-type business combinations.

scholarly journals ANALISIS PENGARUH ARUS KAS OPERASI DAN LABA AKUNTANSI TERHADAP RETURN SAHAM PERUSAHAAN PERAIH INVESTMENT AWARD (BEST ISSUERS) DI BURSA EFEK INDONESIA

2018 ◽  
Vol 7 (2) ◽  
pp. 29-44
Author(s):  
Ika Neni Kristanti
Keyword(s):  
Stock Returns ◽  
Cash Flow ◽  
Stock Return ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Cash Flows ◽  
Company Performance ◽  
Operating Cash Flows ◽  
Operating Cash Flow

Investors in investing always expect high stock returns. Therefore, investors should be able to assess which companies have good performance, so the stock return is also high. The financial statements, particularly those relating to information on changes in operating cash flows and corporate accounting profit, are one of the important information that can be used by investors to assess company performance. This study aims to provide empirical evidence related to the effect of operating cash flow and accounting earnings on stock returns. The data in this study is secondary data obtained from the company's annual financial statements in Indonesia Capital Market Directory (ICMD) and Indonesia Stock Exchange (IDX). This study was conducted using the company population of the company winning the investment award (best issues) 2017 listed on the Indonesia Stock Exchange in 2015 and 2016. The result of this research is partially variable of operating cash flow (AKO) have positive and significant effect to stock return, while partially, variable of accountancy profit (LAK) have no effect to stock return and simultaneously variable operating cash flow (AKO) and change of accountancy profit (LAK) jointly have a significant effect on stock returns in the company's winning investment award (best issues) 2017 listed on the Indonesia Stock Exchange in 2015 and 2016. Keywords: Operating Cash Flow, Accounting Profit, and Stock Return

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