Effect of Interim Earnings and Cash Flows on Abnormal Stock Returns of Technology Sector Companies

Purpose: This study aims to analyze the effect of interim earnings, operating cash flow, investing cash flow, and financing cash flow on abnormal stock returns of technology sector companies listed on the Indonesia Stock Exchange Bursa Efek Indonesia (BEI) in 2022-2025.Methodology: This quantitative study uses secondary data and the documentation method. Purposive sampling yielded 14 companies with 168 observations from Quarter I, Quarter II, and Quarter III. After 68 outlier observations were excluded, the analysis used 100 observations. Data were processed using Statistical Package for the Social Sciences (SPSS) version 26 through descriptive statistics, classical assumption tests, multiple linear regression, the t-test, and the F-test.Results: In the 100-observation screened sample, interim earnings have a negative coefficient of -0.002 (p = 0.030). Operating cash flow (p = 0.095), investing cash flow (reported p = 0.050), and financing cash flow (p = 0.111) do not meet the study's 5% significance criterion. The joint test is also not significant at 5% (F = 2.456; p = 0.051). R Square is 0.094 and Adjusted R Square is 0.056.Conclusions: The negative earnings association depends on outlier treatment and does not imply causality, while interim accounting data have limited power to explain market reactionsLimitations: The study covers 14 technology firms (2022–2025). Excluding 68 observations affects earnings inference, while heteroscedasticity and inconclusive autocorrelation tests limit regression reliability.Contributions: This study extends signaling theory to interim reporting, showing that earnings signals may negatively relate to abnormal returns, while accounting variables have limited explanatory power.

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Publication Details

Journal
Goodwood Akuntansi dan Auditing Reviu
Published
2026-11-05
DOI
https://doi.org/10.35912/gaar.v5.n1.p77-97.2026
Primary Topic
Financial Analysis and Corporate Governance
Type
article
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article

Effect of Interim Earnings and Cash Flows on Abnormal Stock Returns of Technology Sector Companies

Rusmianto Rusmianto, Anita Kusuma Dewi, Depita Anggraini, Alinvia Putri Ramadani
Goodwood Akuntansi dan Auditing Reviu
Financial Analysis and Corporate Governance
article

Effect of Interim Earnings and Cash Flows on Abnormal Stock Returns of Technology Sector Companies

Rusmianto Rusmianto, Anita Kusuma Dewi, Depita Anggraini, Alinvia Putri Ramadani
article en

Abstract

Purpose: This study aims to analyze the effect of interim earnings, operating cash flow, investing cash flow, and financing cash flow on abnormal stock returns of technology sector companies listed on the Indonesia Stock Exchange Bursa Efek Indonesia (BEI) in 2022-2025.Methodology: This quantitative study uses secondary data and the documentation method. Purposive sampling yielded 14 companies with 168 observations from Quarter I, Quarter II, and Quarter III. After 68 outlier observations were excluded, the analysis used 100 observations. Data were processed using Statistical Package for the Social Sciences (SPSS) version 26 through descriptive statistics, classical assumption tests, multiple linear regression, the t-test, and the F-test.Results: In the 100-observation screened sample, interim earnings have a negative coefficient of -0.002 (p = 0.030). Operating cash flow (p = 0.095), investing cash flow (reported p = 0.050), and financing cash flow (p = 0.111) do not meet the study's 5% significance criterion. The joint test is also not significant at 5% (F = 2.456; p = 0.051). R Square is 0.094 and Adjusted R Square is 0.056.Conclusions: The negative earnings association depends on outlier treatment and does not imply causality, while interim accounting data have limited power to explain market reactionsLimitations: The study covers 14 technology firms (2022–2025). Excluding 68 observations affects earnings inference, while heteroscedasticity and inconclusive autocorrelation tests limit regression reliability.Contributions: This study extends signaling theory to interim reporting, showing that earnings signals may negatively relate to abnormal returns, while accounting variables have limited explanatory power.

Goodwood Akuntansi dan Auditing ReviuVol. 5(1)
Openalex Percentile: Top 8%
Financial Analysis and Corporate Governance
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