The Effect of Earnings Characteristics on Firm Market Value (Closing Stock Price): Evidence From Consumer Cyclicals Companies (Idxcyclic) on The Indonesia Stock Exchange
This study aims to analyze the effect of Net Income, Cash Flow from Operations (CFO), and Total Accruals (TA) on firm market value, proxied by closing stock price, in consumer cyclicals companies (IDXCYCLIC) listed on the Indonesia Stock Exchange for 2016–2025. The study uses a quantitative approach of the causal associative type with secondary data and purposive sampling. Multiple linear regression combining dummy variables with continuous independent variables is applied to 660 observations, with Category 3 (CFO < NI and TA < NI) as the reference category. CFO has a positive and significant effect on firm market value and is the variable with the largest effect (Beta = 0.482). Net Income has a significant negative effect (B = −0.098). Firms with CFO > NI (D1) and firms with TA > NI (D2) have significantly lower market values than the reference category. Simultaneously, the variables significantly affect market value, with an Adjusted R² of 17.8%. This study tests Net Income, CFO, and TA in one integrated model in the cyclical sector, and shows that the Indonesian capital market appreciates operating cash flow more than accounting earnings.
Authors
- Diva Aulia Ni'masari
Institutions
- Universitas Negeri Surabaya (ID)
Publication Details
- Journal
- International Journal of Environmental Sustainability and Social Science
- Published
- 2026-11-03
- DOI
- https://doi.org/10.38142/ijesss.v6i4.2150
- Primary Topic
- Financial Analysis and Corporate Governance
- Type
- article
- Field-Weighted Citation Impact
- 0.00