KEMAMPUAN LABA FUNGSIONAL DALAM MENJELASKAN PERILAKU ALIRAN KAS

This research investigate the ablility of functional profits to predict and explain the
cash flow behavior. Much of previous study focus on relation of operating profit,
transitory profit, and net profit with ERC and stock return only.
Using the panel data 1998-2005 periods that consist of 54 firms (432 firm-years), this
research document that gross profit component have the strongest ability to explain
cash flow behavior compare with others. Therefore, if investor want to predict the
future cash flows the use of gross profit is the best one.
Keywords : functional profit, cahs flow behavior, gross profit, operating profit, net
profit.