Analysis of The Influence of Financial on The Stock of Companies in consumer cyclicals and healthcare sector listed on the Indonesia stock exchange for the period 2021-2023

Abstract

This study examines the effect of financial factors on stock returns of companies in the non-primary consumer goods sector and the healthcare sector listed on the Indonesia Stock Exchange during the period 2021–2023. The purpose of this study is to analyze the influence of probability of financial distress, capital structure, firm size, liquidity, and price to cash flow from operating activities on stock returns in both sectors. This research employs a quantitative approach using panel data regression analysis. The sample was selected through purposive sampling, and secondary data were obtained from published financial statements and stock price information. The results indicate that the probability of financial distress has a negative effect on stock returns, particularly in the non-primary consumer goods sector. Capital structure, liquidity, and price to cash flow from operating activities do not have a significant effect on stock returns in either sector. Firm size affects stock returns in the non-primary consumer goods sector but not in the healthcare sector. The study concludes that industry characteristics play an important role in shaping investor responses to corporate financial conditions.