Market Response to Financial Signals in Indonesia's Post-Pandemic Insurance Sector

Abstract

This investigation examines market responses to financial signals within Indonesia's insurance sector during 2019-2023, emphasizing post-pandemic dynamics. Employing secondary data from 16 insurance companies listed on the Indonesia Stock Exchange, multiple linear regression analysis explores net profit, cash flow, and firm size effects on stock prices. Findings demonstrate that exclusively firm size significantly influences stock prices (β = 0.110, p = 0.028), whereas net profit and cash flow exhibit positive but statistically insignificant effects. These results validate signaling theory and reveal flight-to-quality investor behavior amid economic uncertainty. This research contributes substantially to understanding Indonesia's post-pandemic capital market dynamics, particularly within the insurance sector experiencing considerable transformation through economic disruption and regulatory intervention, emphasizing investor preference for stability indicators over short-term performance metrics during crisis recovery.