Abstract

Investors do their investment in a company to get a chance for optimum stock return. Therefore investors need to determine a company that has good value using the cash flow information. The stock return obtains the payment received for its ownership and changes in the market price divided by the initial market price. Investors are giving more attentionto the company that have the cash flows’ stability and the optimum return of their invesment. This stock return allows investors to compare the expected returns provided by various investments at the various rate of return. This study aims to examine the effect of cash flow on stock returns. The population of this study is property and real estate companies listed on the Indonesia Stock Exchange (IDX) for the period 2018-2020. The sample is obtained by the purposive sampling method with 109 companies that match with the criteria. The results show that operating cash flow affects stock returns, meanwhile investment cash flow and funding cash flow do not affect stock returns.

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