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.

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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
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article

The Effect of Earnings Characteristics on Firm Market Value (Closing Stock Price): Evidence From Consumer Cyclicals Companies (Idxcyclic) on The Indonesia Stock Exchange

Diva Aulia Ni'masari
International Journal of Environmental Sustainability and Social Science
Financial Analysis and Corporate Governance
article

The Effect of Earnings Characteristics on Firm Market Value (Closing Stock Price): Evidence From Consumer Cyclicals Companies (Idxcyclic) on The Indonesia Stock Exchange

Diva Aulia Ni'masari
article en

Abstract

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.

International Journal of Environmental Sustainability and Social ScienceVol. 6(4)
Universitas Negeri Surabaya (ID)
Openalex Percentile: Top 8%
Financial Analysis and Corporate Governance
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