The impact of cash flow statement on firm value in indonesia

Iskandar Itan, Wiwy Riana

Abstract


This study aimed to determine the impact of cash flow statement on firm value in Indonesia companies that listed on the Indonesia Stock Exchange. The total data used as the sample was 1,236 data including all sectors except financial sectors for the period 2015 to 2019. The fixed effect model was chosen as the best model to analyze panel data. Furthermore, Eviews 10 application was also to help the process of regression. The results of this study showed that the operating cash flow ratio had a positive significant effect on firm value. Meanwhile, the investing cash flow ratio and financing cash flow ratio had a negative significant effect on firm value. In addition, the results also indicated that operating dummy and investing dummy had no effect on firm value. Besides, the financing dummy was the same as financing cash flow ratio that significantly affected the firm value. Furthermore, both managers’ holding ratio and board size revealed a significant relationship to the firm value, while the independent director dummy showed a positive significant effect on firm value.


Keywords


Cash flow statements; corporate governance; firm value

Full Text:

PDF

References


Abbasi, M., Kalantari, E., & Abbasi, H. (2012). Impact of Corporate Governance Mechanisms on Firm Value Evidence from the Food Industry of Iran. Journal of Basic and Applied Scientific Research, 2(5), 4712–4721.

Abughniem, M. S., Al Aishat, M. A. H., & Hamdan, A. (2020). Free Cash Flow and Firm Performance: Empirical Evidence from the Amman Stock Exchange. International Journal of Innovation, Creativity and Change, 10(12), 668–681.

Alslehat, N., & Al-Nimer, M. (2017). Empirical Study of the Relationship between Cash Flow Management and Financial Perfomance of Jordanian Insurance Companies. Medwell Journals.

Amah, Ogbonnaya, K., Ekwe, M. C., & Uzoma, I. J. (2016). Relationship of Cash Flow Ratios and Financial Performance. European Journal of Accounting, Auditing and Finance Research Vol.4, 4(4), 89–97. http://ecommons.luc.edu/cgi/viewcontent.cgi?article=1029&context=meea

Amrizal, A., & Rohmah, S. H. N. (2015). Pengaruh Kepemilikan Institusional, Dewan Komisaris Independen, Komite Audit dan Kualitas Audit terhadap Nilai Perusahaan. Syariah Paper Accounting FEB UMS, 2010, 220–227. https://publikasiilmiah.ums.ac.id/xmlui/handle/11617/9217

Amuzu, M. S. (2010). Cash Flow Ratio as a Measure of Perfomance of Listed Companies in Emerging Economies: The Ghana Example. St. Clements Univesity.

Anita, A., & Yulianto, A. (2016). Pengaruh Kepemilikan Manajerial dan Kebijakan Dividen terhadap Nilai Perusahaan. Management Analysis Journal 5 (1) (2016).

Budianto, W., & Payamta, P. (2014). Pengaruh Kepemilikan Manajerial Terhadap Nilai Perusahaan Dengan Kebijakan Dividen Sebagai Variabel Moderasi. Assets: Jurnal Akuntansi Dan Pendidikan, 3(1), 13. https://doi.org/10.25273/jap.v3i1.1207

Dickinson, V. (2011). Cash Flow Patterns as a Proxy for Firm Life Cycle. Accounting Review, 86(6), 1969–1994. https://doi.org/10.2308/accr-10130

Dita Novita Sari, M., & Mawardi, W. (2017). Determinan of Profitability and its Impact On Firm Value: Evidence From Indonesia Stock Exchange. http://eprints.undip.ac.id/58525/1/Jurnal_Dita_Novita_Sari_12010115410048.pdf

El-Faitouri, R. (2014). Board of Directors and Tobin’s Q: Evidence from U.K.Firms. Journal of Finance and Accounting, 2(4), 82–99. https://doi.org/10.12691/jfa-2-4-2

Frank, B. P., & James, O. K. (2014). Cashflow and Corporate Performance: a Study of Selected Food and Beverages Companies. European Journal of Accounting and Finance Reseach, 2(7), 77–87.

Gheshlaghi, F. D. R., Ahmadzadeh, Y., & Faal, F. (2014). The cash flow statement’s component effect on Management Performance in firms enlisted in Tehran Stock Exchange. UCT Journal of Management and Accounting Studies.

Gitiri, M. M. (2010). The Relationship Between Cash-Flows and Profitability of Commercial Banks in Kenya. University of Nairobi.

Gunawan, L. (2016). Pengaruh Net Profit Margin dan Total Asset Turnover terhadap Nilai Perusahaan pada Sektor Industri Barang Konsumsi yang terdaftar di Bursa Eefek Indonesia. Jurnal Ilmiah Sekolah Tinggi Ilmu Ekonomi Widya Dharma Pontianak, 07(01), 22–31.

Hasania, Z., Murni, S., & Mandagie, Y. (2016). Pengaruh Current Ratio, Ukuran Perusahaan, Struktur Modal, dan ROE terhadap Nilai Perusahaan Farmasi yang terdaftar di Bursa Efek Indonesia Periode 2011 - 2014. Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 4(2), 133–144.

Hermalin, B. E., & Weisbach, M. S. (2003). Boards of Directors as an Endogenously Determined Institution: A Survey of the Economic Literature. FRBNY Economic Policy Review. https://doi.org/10.1080/14767058.2016.1228104

Husna, A., & Satria, I. (2019). Effects of Return on Asset, Debt To Asset Ratio, Current Ratio, Firm Size, and Dividend Payout Ratio on Firm Value. International Journal of Economics and Financial Issues, 9(5), 50–54. https://doi.org/10.32479/ijefi.8595

Jensen, M. C. (1993). The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems. The Journal of Finance, 48(3), 831–880. https://doi.org/10.1111/j.1540-6261.1993.tb04022.x

Kumar, N., & Singh, J. P. (2013). Effect of Board Size and Promoter Ownership on Firm Value: Some Empirical Findings from India. Corporate Governance (Bingley), 13(1), 88–98. https://doi.org/10.1108/14720701311302431

Kurniawati, H. (2016). Pengaruh Board Size, Leverage, dan Kualitas Audit Terhadap Nilai Perusahaan. Jurnal Keuangan Dan Perbankan, 12(2), 110–127.

Kusumaningtyas, A., & Mildawati, T. (2016). Pengaruh Arus Kas Operasi, Stuktur Kepemilikan, dan Ukuran Perusahaan terhadap Kinerja Keuangan. Jurnal Ilmu Dan Riset Akuntansi :, 5(2), 1–17.

Livnat, J., & Zarowin, P. (1990). The Incremental Information Content of Cash-Flow Components. Journal of Accounting and Economics, 13(1), 25–46. https://doi.org/10.1016/0165-4101(90)90066-D

Mak, Y. T., & Kusnadi, Y. (2005). Size Really Matters: Further Evidence on the Negative Relationship between Board Size and Firm Value. Pacific Basin Finance Journal, 13(3), 301–318. https://doi.org/10.1016/j.pacfin.2004.09.002

Nguyen, D. D., & Nguyen, A. H. (2020). The Impact of Cash Flow Statement on Lending Decision of Commercial Banks: Evidence from Vietnam. Journal of Asian Finance, Economics and Business, 7(6), 85–93. https://doi.org/10.13106/JAFEB.2020.VOL7.NO6.085

Nguyen, H., & Faff, R. (2006). Impact of Board Size and Board Diversity on Firm Value: Australian Evidence. Corporate Ownership and Control, 4(2 A), 24–32. https://doi.org/10.22495/cocv4i2p2

Ni, Y., Huang, P., Chiang, P., & Liao, Y. (2019). Cash Flow Statements and Firm Value: Evidence from Taiwan. Quarterly Review of Economics and Finance, 71, 280–290. https://doi.org/10.1016/j.qref.2018.09.004

Nurwahidah, N., Husnan, L. H., & AP, I. N. N. (2019). Pengaruh Kepemilikan Manajerial Terhadap Nilai Perusahaan Dengan Struktur Modal Dan Profitabilitas Sebagai Variabel Intervening Pada Perusahaan Real Estate Di Bursa Efek Indonesia. Jmm Unram - Master of Management Journal, 8(4). https://doi.org/10.29303/jmm.v8i4.460

Nwanyanwu, L. A. (2015). Cashflow and Organizational Performance in Nigeria: Hospitality and Print Media Industries Perspectives. European Journal of Business, Economics and Accountancy, 3(3), 66–72.

Octavia, S. M., & Nita, R. A. (2017). Pengaruh Kepemilikan Manajerial, Dan Kepemilikan Institusional Terhadap Nilai Perusahaan. 1–18.

Onasis, K., & Robin. (2016). Pengaruh Tata Kelola Perusahaan terhadap Nilai Perusahaan pada Perusahaan Sektor Keuangan yang Terdaftar di BEI. Bina Ekonomi, 20(1), 1–22. https://doi.org/10.26593/be.v20i1.1893.1-22

Perdana, R. S. (2014). Analisis Pengaruh Corporate Governance Terhadap Nilai Perusahaan. Diponegoro Journal of Accounting, 3, 766–778.

Purnama Sari, A., & Ardiana, P. (2014). Pengaruh Board Size Terhadap Nilai Perusahaan. E-Jurnal Akuntansi, 7(1), 177–191.

Ristiyana, R. (2019). Pengaruh Arus Kas dan Pengembalian Modal terhadap Nilai Perusahaan (Studi Pada PT. Hero Supermarket, Tbk Periode 2004 – 2018). Jurnal Penelitian Dan Karya Ilmiah, 19(2), 210–224. https://doi.org/10.33592/pelita.vol19.iss2.122

Rustan, Said, D., & Rura, Y. (2014). Pengaruh Struktur Kepemilikan terhadap Nilai Perusahaan: Kualitas Laba dan Kebijakan Hutang sebagai Variabel Intervening. Jurnal Analisis, 3(1), 32–39.

Suastini, N. M., Ida, B. A. P., & Henny, R. (2016). Pengaruh Kepemilikan Manajerial dan Pertumbuhan Perusahaan Terhadap Nilai Perusahaan Pada Perusahaan Manufaktur Di Bursa Eefek Indonesia (Struktur Modal sebagai Variabel Moderasi). Jurnal Ekonomi Dan Bisnis Universitas Udayana, 5(1), 143–172.

Tambunan, R. W., Dwiatmanto, & N.P, M. . W. E. (2015). Analisis Prediksi Kebangkrutan Perusahaan dengan Menggunakan Metode Altman (Z-Score) (Studi pada Subsektor Rokok yang Listing dan Perusahaan Delisting di Bursa Efek Indonesia tahun 2009 – 2013). Jurnal Administrasi Bisnis, 2(1), 2–11.

Wibowo, S. (2015). Pengaruh Komisaris Independen, Komite Audit, Dewan Komisaris, Kepemilikan Manajaerial dan Dewan Direksi Terhadap Nilai Perusahaan pada Perbankan yang Terdaftar di Bursa Efek Indonesia 2011-2015 (Studi Kasus: Top 10 Perbankan Terbaik di Indonesia). 84–102.




DOI: https://doi.org/10.30872/jfor.v23i3.9703

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Copyright (c) 2021 Iskandar Itan, Wiwy Riana

Crossref logo 

Editorial Address

FORUM EKONOMI: Jurnal Ekonomi, Manajemen dan Akuntansi
Faculty of Economics and Business, Mulawarman University
Jl. Tanah Grogot No.1 Samarinda Kalimantan Timur 75119
Email: jakt.feb.unmul@gmail.com

StatCounter: FORUM EKONOMI: Jurnal Ekonomi, Manajemen dan Akuntansi