Financial statements, especially which relate to company’s net earnings, cash
flow from operating, and firm size, are one of most important pieces of information used
by investors to make an evaluation on a company’s perfomance. This research aims to
give empirical evidence which explain the impact of net earnings, cash flow from
operating and firm size in relation to stock returns.
The samples of this study are from 31 financial companies which are listed in
the Indonesia Stock Exchange during 2010-2014. This research uses multiple
regression methods with purposive sampling method to select samples from the
population. The dependent variable is stock return; meanwhile independent variables in
this research are a growth in net earnings, cash flow from operating and firm size.
The result of this study shows that net earnings have positive and significant
impact on stock returns, while a growth in cash flow from operating and firm size did
not have significant impact toward stock returns. Simultaneously, all independent
variables have a significant impact towards stock returns.
Keywords: Net Earnings, Cash Flow from Operating, Firm Size, Stock Returns