Relevance of Value Owned Profit and Cash Flows Based on the Life Cycle in the Growth Stage of Food and Beverages Companies Listed on the Indonesia Stock Exchange

This study aims to determine the relevance of the value of earnings and cash flow as a measure of accounting performance against market value when the company is in the growth life cycle. The sample of this company is a food and beverage company listed on the Indonesia Stock Exchange in 2006-2010. The sample was selected using the purposive judgment sampling method and 16 companies were sampled. The results showed that (1) earnings have value relevance in measuring the market value of the company at the stagegrowth, (2) profit is significant to the market value of companies that are in the company's life cycle at the growth stage, (3) cash flows are not significant to the market value of companies that are in the company's life cycle at the growth stage, (4) profit is an option for investors in assessing whether they will invest in the company. With a relatively short time, investors are required to move quickly and precisely in assessing the company, therefore profit is the right component in completing work.