THE EFFECT OF ACCOUNTING PROFIT, CASH FLOW COMPONENTS AND ROE ON STOCK RETURNS

Abstract

The purpose of this Stock Return research is to find whether there is an effect of accounting profit, three components of cash flow (operating, investing,
funding), along with return on equity on stock returns in the banking sector that has been listed on the Indonesia Stock Exchange 2018-2022. The total population of the banking sector was 56 and a sample of 20 banks was taken by purposive sampling. The data observed is financial statement data in the form of secondary data. The analysis process used in the study is multiple linear regression. Based on the test results used in 20 banks, it shows that only one of the five independent variables has an influence on stock returns. The accounting profit variable has an impact on stock returns while the operating cash flow, investment, funding, and return on equity variables have no impact on stock returns.