Relationship between Fundamental Signals and Cash Flow Information on Stock Return after the Convergence of IFRS

DOI

10.2991/icame-18.2019.35How to use a DOI?

Keywords

Fundamental Information, Cash Flow Information, Stock Returns

Abstract

This study aims to find alternative information non-earnings (earnings) after IFRS convention in investing by testing (1) the relationship of fundamental information (account receivable signal, inventory signal, gross margin signal, sales, and administrative signal, effective tax signal, labor force and capital expenditure signal) on stock returns; and (2) Cash flows information (operating cash, investing cash and financing cash) on stock returns. This research was conducted on the Indonesia Stock Exchange (IDX) using secondary data. Sampling was carried out purposively and resulted in 175 observational data in 2012-2016. Data were analyzed using multiple linear analysis methods. The results showed (1) fundamental information such as account receivable, sales and administrative expenses and capital expenditure had a significant effect on stock returns, while fundamental signals such as inventory, gross margin, effective tax rate, labor force showed insignificant results; and (2) Cash flow information such as operating cash flows, investing cash and financing cash also provide insignificant results. Based on the results of these studies it can be concluded that fundamental information such as account receivable signal, sales, and administrative signal and capital expenditure signal can be used as alternative information in investing after IFRS convergence.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Ramly
AU  - Ismail Rasulong
AU  - Buyung Romadhoni
AU  - Diah Ayu Gustiningsih
AU  - Alamsjah
AU  - St. Ramlah
PY  - 2019/08
DA  - 2019/08
TI  - Relationship between Fundamental Signals and Cash Flow Information on Stock Return after the Convergence of IFRS
BT  - Proceedings of the 3rd International Conference on Accounting, Management and Economics 2018 (ICAME 2018)
PB  - Atlantis Press
SP  - 319
EP  - 325
SN  - 2352-5428
UR  - https://doi.org/10.2991/icame-18.2019.35
DO  - 10.2991/icame-18.2019.35
ID  - 2019/08
ER  -