THE ACCURACY OF NET INCOME OF CASH FLOW FROM OPERATIONS ACCOUNTING MEASURE FOR STOCK PRICE FORECASTS: EVIDENCE FROM EMERGING MARKETS
NUGRAHA, BRAMANTYA ADI (Adv.: Jan Lemmen, Dr), Jan Lemmen, Dr
This study investigated the effects of the Net Income over Cash Flow from Operations (NI/CFO) to forecast stock prices in three emerging countries during 2002-2011. This study is helpful to companies for deciding on the inclusion of important financial indicators in their financial statements. NI/CFO reflects the profitability of a companys income in the long run. Furthermore, this study investigated the significance of NI/CFO with other prominent financial indicators in forecasting stock prices. This study found NI/CFO to be significant for in the three countries. Moreover, NI/CFO can quite accurately forecasts stock price movements in one of the countries.
Kata Kunci : Net Income over Cash Flow from Operations, Fundamental Analysis, Stock Price Forecasts, Emerging Markets
