The Effect of Net Income and Net Cash Flow on Market Capitalization

Gorontalo Accounting Journal
Volume 9 Number 1 April 2026

This study aims to analyze the effect of net income and net cash flow on market capitalization of companies listed on the Indonesian Stock Exchange during the 2019–2023 period. The research uses a quantitative approach with multiple linear regression analysis based on secondary data from annual financial statements. The results show that net income has a positive and significant effect on market capitalization, while net cash flow has no significant effect. These findings indicate that net income plays a more important role in influencing firm value from investors’ perspectives.