Stock Price Reaction when Covid -19 Exist: Moderating by Firm’s Operating Cash Flow

Abstract

COVID-19 has been declared a global pandemic by the WHO, rendering the stock markets volatile. Investors predict that the pandemic can be a threat to a company's cash flow, whereas managers use the last year's financial condition to defend their stock price. We evaluate whether the company's operating cash flow moderates the company's financial condition and stock price reactions, in addition to making a comparison between the period before and during the COVID-19 pandemic using Difference in Difference. The regression analysis model used is a random effect model. The objects of this research are the hotel, tourism, restaurant, and retail trade sub-sector companies in the first quarter and second quarter of 2020, and 2019 and 2018 annually. We found that none of the firm's financial condition affected the stock's price reaction. We also found that operating cash flow strengthens the relationship between cash and ROA to the stock price. The results of this study further imply that the COVID-19 pandemic caused a significant stock price reaction when compared between the time before and during the COVID-19 disaster in Indonesia. The current study is hoped to contribute towards supporting the government in formulating policies to stimulate the currently-slumping economy. This study can also assist the investors in preparing their analysis to determine whether what action they should take in regards to their stocks, considering that our research implicitly reflects the development of conditions in several industrial sectors.

Pengaruh Likuiditas Dan Cash Flow Operation Terhadap Nilai Perusahaan serta dampaknya Terhadap Ketepatan Prediksi Saham

“…Demikian juga Itan & Riana (2021) bahwa cash flow operation mempengaruhi nilai perusahaan. Dan menurut Nugroho & Pertiwi, (2021) menyatakan bahwa cash flow opeation mempengaruhi nilai perusahaan. Berkaitan dengan kajian yang telah dilakukan, maka terbentuklah hipotesis sebagai berikut: H2: Cash flow operation berpengaruh terhadap nilai perusahaan.…”

“…Pergerakan harga saham yang terus berfluktuasi membutuhkan keputusan yang tepat dan cepat, sehingga pelaku pasar saham cenderung untuk mengambil keputusan berdasarkan informasi yang sudah tercantum di laporan keuangan. Hal ini tidak sejalan dengan penelitian Fatmawatie (2021), Itan & Riana (2021), serta Nugroho & Pertiwi (2021) yang menyatakan bahwa cash flow operation berpengaruh terhadap nilai perusahaan.…”

Analisis Pengaruh Kinerja Keberlanjutan Terhadap Kinerja Keuangan Selama Masa Pandemi Covid-19

“…Pada mulanya, Covid-19 menyerang kesehatan warga di berbagai belahan bumi (Aifuwa, Musa dan Aifuwa, 2020). Namun, karena pandemi tidak kunjung usai maka penurunan ketahanan ekonomi berbagai negara ikut merasakan dampaknya (Nugroho dan Pertiwi, 2021). Guncangan ekonomi tersebut ditandai dengan bergejolaknya permintaan dan penawaran atas suatu produk dan jasa tertentu (Louhichi, Ftiti dan Ameur, 2021).…”

Respon Pasar Atas Pengungkapan Emisi Karbon Di Indonesia : Bagaimana Peran Tata Kelola Perusahaan?

“…Sementara itu, proksi profitabilitas menggunakan return on assets sebagaimana Hapsoro & Ambarwati (2018) dan Mujiani et al, (2019)). Selanjutnya, arus kas operasi menggunakan proksi yang digunakan oleh Francis et al (2004), Nugroho & Pertiwi (2021) yaitu arus kas operasi dibagi rata-rata total aset. Pengujian hipotesis dilakukan dengan analisis regresi berganda untuk data panel.…”