The effect of operating cash flow and accounting profit on stock returns in listed healthcare companies

Abstract

This study examines the effect of operating cash flow and accounting profit on stock returns in listed healthcare companies in Indonesia. The data were obtained from quarterly financial reports of healthcare companies listed on the Indonesia Stock Exchange. This study employs a quantitative method, using secondary data and multiple linear regression analysis. The population consists of 16 healthcare companies, with a sample of 6 companies and 30 financial report data points selected using a non-purposive sampling method. The results indicate that, partially, operating cash flow has no significant effect on stock returns. Similarly, accounting profit does not significantly influence stock returns. Furthermore, both variables, when tested simultaneously, do not have a joint effect on stock returns in the healthcare sector. The findings suggest that investors should consider additional financial and non-financial factors when making investment decisions, as accounting profit alone does not determine stock returns.