The Effect of Net Profit and Net Cash Flow on Market Capitalization (Case Study of Sharia Banking Companies at the Indonesia Stock Exchange 2019–2022 Period):

Ananda Putri Aulia Zahra; Haqiqi  Rafsanjani; Arin Setiyowati

doi:10.21070/perisai.v8i1.1671

(1) * Ananda Putri Aulia Zahra Universitas Muhammadiyah Surabaya
Indonesia
(2) Haqiqi Rafsanjani Universitas Muhammadiyah Surabaya
Indonesia
(3) Arin Setiyowati Universitas Muhammadiyah Surabaya
Indonesia
(*) Corresponding Author

DOI: https://doi.org/10.21070/perisai.v8i1.1671

Abstract

Capital market players or investors will consider several elements that can indicate the state of the company, such as examining financial reports from cash flow to profit and loss statements. In addition, the company's share price will ultimately be related to its market capitalization value. The profits obtained by investors will increase along with the increase in stock market capitalization, and the greater the appreciation, the higher the level of profit from an alternative investment. This study aims to determine the effect of net income and net cash flow on market capitalization. Secondary data in the form of Sharia Banking quarterly financial reports that have been listed on the Indonesia Stock Exchange (IDX) for 2019-2022 is the source of the data. Three samples for this research sample were obtained, namely Bank Panin Dubai Syariah (PNBS), Sharia National Pension Savings Bank (BTPS), and Bank Syariah Indonesia (BSI). Panel data regression analysis with the Eviews 12 program was used in this study. The results show that partially net income has a negative and insignificant impact while net cash flow has a positive and significant impact on market capitalization. Meanwhile, market capitalization is simultaneously influenced by net profit and net cash flow variables.

References

Adiwiratama, J. (2012). The Influence of Information on Profit, Cash Flow and Company Size on Stock Return (Empirical Study of Manufacturing Companies Registered on the IDX). Scientific Journal of Accounting and Humanics, 2, 1–25.

Ander, K., Ilat, V., & Wokas, H. (2021). The Effect of Cash Flow and Accounting Profits on Stock Returns in Manufacturing Companies in Bei. EMBA Journal: Journal of Economics, Management, Business and Accounting Research, 9, 764–775.

Ardiansyah, E. (2022). Know the Market Cap in Stock Investing. Poems. Co. Id. https://www.poems.co.id/htm/Freeducation/Newsletter/v12/Vol111_mengenalmarketcapsaham.html

Aulia, N., & Aisyah, E. (2023). Analisis Pengaruh Pembiayaan, Inflasi, dan Jumlah Uang Beredar Terhadap Profitabilitas Bank Syariah di Indonesia. Perisai: Jurnal Perbankan dan Keuangan Islam, 7, 278–292. DOI: https://doi.org/10.21070/perisai.v7i2.1668

Awaluzi, M. R., & Maharani, N. K. (2022). Pengaruh Return On Asset, Debt To Equity Ratio dan Cash Dividend terhadap Nilai Kapitalisasi Pasar. Al Qalam: Jurnal Ilmiah Keagamaan dan Kemasyarakatan, 16(2), 788. https://doi.org/10.35931/aq.v16i2.953 DOI: https://doi.org/10.35931/aq.v16i2.953

Cerniati, & Hasan, W. (2020). The Effect of Gross Profit, Operating Profit, and Net Profit in Predicting Future Cash Flows Case Study of LQ 45 Companies Listed on the IDX. Student Scientific Journal of the Faculty of Economics, UMButon, 2, 204–222.

Diansyah. (2020). The Effect of Free Cash Flow and Fixed Asset Turnover on Profit Movements and Their Impact on Stock Prices. Journal of Modern Office and Administration, 9, 26–37.

Faith, M. (2022). The Influence of Net Profit, Current Ratio and Cash Flow on Stock Prices of Food and Bevarages Companies on the Indonesia Stock Exchange.

Firanti, E. (2018). The Effect of Free Cash Flow and Net Income on Consumer Goods Company Stock Returns. Journal of Accounting Science and Research, 3, 390–401.

Hakim, N., & Rafsanjani, H. (2016). Pengaruh Internal Capital Adequency Ratio (CAR), Financing to Deposit Ratio (FDR), dan Biaya Operasional per Pendapatan Operasional (BOPO) dalam Peningkatan Profitabilitas Industri Bank Syariah di Indonesia. Jurnal Aplikasi Manajemen, 14, 161–168. DOI: https://doi.org/10.18202/jam23026332.14.1.17

Idris, H., & Idrus, M. (2021). Effect of Net Cash Flow and Accounting Profit on Stock Returns. YUME : Journal of Management, 4, 1–18. https://doi.org/10.37531/yume.vxix.354

Iman, N. (2022). Analisis Determinan Atas Profitabilitas Bank Syariah Di Indonesia. Jurnal Akuntansi Dan Keuangan Islam, 10, 31–53. DOI: https://doi.org/10.35836/jakis.v10i1.280

Indonesia, K. (2022). Positive Achievements in 2022, Growing New Enthusiasm in 2023. In PR No: 096/BEI.SPR/12-2022.

Khamidah, N. (2022). The Influence of Asset Activity, Npm and Roe on Market Capitalization of Conventional Banking Sub-Sectors Listed on the Indonesia Stock Exchange (2012-2021). Nusantara Hasana Journal, 1, 22–32.

Lestari, W., & Rosharlianti, Z. (2023). Pengaruh Laba Bersih dan Arus Kas Operasi terhadap Return Saham: Pada Perusahaan Indeks LQ-45 yang Terdaftar di Bursa Efek Indonesia. Jurnal Pendapatan: Jurnal Ilmiah Akuntansi, 3, 674–689.

Lubis, D. (2021). The Effect of Net Income and Dividends on Stock Prices in Agriculture Companies Listed on the Indonesia Stock Exchange (IDX). Scientific Work of Faculty of Social Science Students. https://journal.pancabudi.ac.id/index.php/jurnalfasosa/article/view/3708

Maruta, H. (2017). Definition and Purpose of Cash Flow. Journal of Islamic Accounting (JAS), 1, 238–257.

Meliana, R. (2020). The Effect of Profit, Cash Flow Components and Book Value of Shares on Stock Prices (Empirical Study of Companies Listed on the LQ-45 Index of the Indonesia Stock Exchange for the 2016-2019 Period).

Napitupulu, R., Simanjuntak, T., Hutabarat, L., & Damanik, H. (2021). Business Research: Engineering and Data Analysis with SPSS - STATA - EVIEWS. In Madenatera, 1.

Priyatno, D. (2022). Own Data Process Linear Regression Analysis with SPSS and Panel Data Regression Analysis with Eviews.

Putriani, N. (2014). The Influence of Free Cash Flow and Net Profit on LQ-45 Company Stock Return. Udayana University Accounting E-Journal, 6, 390–401.

Saputra, R., & Meyla, D. (2021). Effect of Operating Cash Flow, Receivable Turnover Rate and Net Income on Stock Return (Empirical Study of LQ-45 Companies on the IDX for the 2016-2018 Period). Pareso Journal, 3, 107–122.

Sari, S., Kusno, H., & Ramli, R. (2022). Effect of Net Profit, Cash Flow Components, Company Size on Banking Company Stock Prices during the Covid-19 Pandemic. Journal of Business And Entrepreneurship, 18, 257–270. https://doi.org/10.31940/jbk.v18i3.257-270 DOI: https://doi.org/10.31940/jbk.v18i3.257-270

Sasono, H. (2022). Effect of Net Profit, Total Cash Flow and Company Size on Stock Prices in Plantation, Automotive and Construction Sub-Sector Companies. Mandalika Scientific Journal (JMS), 3, 840–850.

Siregar, H., & Nurmala, P. (2018). Effect of Firm Size and Opinion Acceptance. Journal of Financial and Accounting Research, 4, 83–84.

Umdiana, N., & Hapsari, D. (2016). Analysis of the Influence of Net Cash Flow and Profit on Sharia Stocks. Journal of Accounting, 3, 16–23.

Wijaya, D. (2017). Analysis of the Effect of Profitability on Market Capitalization (Case Study of 5 Big Capitalization Companies in 2010-2015). Student Scientific Journal, 5. https://jimfeb.ub.ac.id/index.php/jimfeb/article/view/3580/3193

Yocelyn, A., & Christiawan, Y. (2013). Analysis of the Effect of Changes in Cash Flow and Accounting Profits on Stock Returns in Large Capitalized Companies. Journal of Accounting and Finance, 14, 81–90. https://doi.org/10.9744/jak.14.2.

Zakariah, M. (2021). Statistical Analysis With SPSS For Quantitative Research. Al Mawaddah Islamic Boarding School Foundation.

The Effect of Net Profit and Net Cash Flow on Market Capitalization (Case Study of Sharia Banking Companies at the Indonesia Stock Exchange 2019–2022 Period)

Pengaruh Laba Bersih dan Arus Kas Bersih terhadap Kapitalisasi Pasar (Studi Kasus pada Perusahaan Perbankan Syariah di Bursa Efek Indonesia Periode 2019–2022)

Abstract

References

Most read articles by the same author(s)