The Effect of Cash Flow on Liquidity in Pharmaceutical Sub Sector Companies Listed on the Indonesia Stock Exchange

Abstract

study aims to determine the effect of cash flow on liquidity in pharmaceutical companies listed on the Indonesian Stock Exchange. The variables of this study are cash flow from operating, investing and financing activities as the independent variable and liquidity as the dependent variable. The population in this study is the financial statements of pharmaceutical companies listed on the Indonesia Stock Exchange in the 2019-2021 period. The data analysis technique used is the classical assumption test, and hypothesis testing. The results of the study after the data were processed using SPSS.2.8 obtained the results of measuring the multiple regression equation Y = 410,711 + 1.434 X1 - 4.712 X2 - 5.411 X3. The partial results of the study (t test) state that operating cash flow has a significance value of > 0.05, or partially does not have a significant effect on liquidity. While investment cash flow has a significance value of > 0.05, so that it partially does not have a significant effect on liquidity. And funding cash flows have a significance value of <0.05, meaning that funding cash flows partially have a significant effect on liquidity. The results of the simultaneous study (F test) of operating, investing and financing cash flows obtained a significance value of 0.001 <0.05. It can be concluded that operating, investing and funding cash flows simultaneously have a significant effect on liquidity.