The Effect of Net Profit and Operating Cash Flow on Share Prices in Telecommunication Companies Listed on the Indonesian Stock Exchange

Abstract

This research aims to determine the partial effects of net income and operating cash flow on stock prices and to investigate the simultaneous influence of net income and operating cash flow on stock prices. The variables in this study include Stock Prices as the dependent variable (Y), measured by the closing stock price at the market close, Net Income as an independent variable (X1), measured by pre-tax net income minus income tax, and Operating Cash Flow as an independent variable (X2), measured by the value of incoming cash flow minus outgoing cash flow. The population of this study comprises telecommunications companies listed on the Indonesia Stock Exchange, with a sample of 10 telecommunications companies selected using purposive sampling technique. Data collection is conducted through documentation techniques. This research utilizes multiple linear regression analysis to examine the relationship between net income, operating cash flow, and stock prices.