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sibuan, 2009). Performance according to the above
definition can be interpreted that performance has two
types, namely: (a) Financial performance related to
the performance of a measurable individual or or-
ganization of economic activities that can be quan-
tified. For example comparison of sales level from
year to year; (b) Non-financial performance relates
to the performance of an individual or organization
that can not be measured by numbers. For example,
customer satisfaction over services provided by em-
ployees. In (Ediningsih and Yacobus, 2009) explained
that the performance of the company is an evaluation
of how the company is considered successful or not
in running its business. In evaluating the financial of
company performance required tool called the ratio.
Subramanyam and (Subramanyam et al., 2010) ex-
plain that there are ratios that can be used to measure
the performance of a company such as liquidity ratio,
capital structure ratio and leverage, investment rate re-
turn ratio, operating performance ratio, asset utiliza-
tion ratio, and size ratio market. Each ratio has its
own usability and interpretation.
4 HYPOTHESIS
4.1 Operating Cash Flow Ratio before
and after Right Issue
Operating cash flow is the cash flow generated from
the core activities of company (Amuzu, 2010). This
ratio shows the cash received by the company from
customers. Cash in operating cash flows is the cash
flow received from customers from the core activi-
ties of company. Each company has different core
activities. Debt payments will increase the value of
the operating cash flow ratio (Amuzu, 2010). Cash
earned from operating cash flows will not be too used
to pay off corporate debt. Operation Cash Flow Ratio
is derived from total operating cash flows divided by
total current liabilities (Subramanyam et al., 2010).
The value of the operating cash flow ratio is derived
from dividing the operating cash flow to current lia-
bilities. If the cash flow is higher, the value will be
higher. (Simanullang and Daljono, 2013) stated that a
company uses the funds obtained from the right issue
in order to reduce their debt level. If current liabili-
ties are less, the value will be high. The data is used
to calculate the cash flow ratio which is obtained in
the financial statements. Information on the operating
cash flow of the company can be obtained in the finan-
cial company statements in the cash flow statement.
Meanwhile, information on current liabilities can be
obtained in the financial of company statements in the
consolidated statements of financial position. If the
cash flow from operating activities increases then the
operating cash flow ratio will be better with a fixed
obligation record. If the right issue is used by the
company to settle the obligation, the amount of cor-
porate liabilities is reduced, the ratio will be better
with the record of operating cash flow remains. Re-
searchers have conducted international and national
online and offline journal surveys, but have not found
any research which using the ratio of cash flow oper-
ations as a measure of the financial performance of a
company doing a right issue. The theory development
of these variables uses theories derived from Subra-
manyam and (Subramanyam et al., 2010), (Amuzu,
2010). Considering the theory described by (Amuzu,
2010) and the logic of thought, hypotheses have one
direction. From the description above, it can be de-
rived hypothesis as follows;
H1: Suspected there are differences in operating
cash flow ratio before and after right issue
4.2 Differences Debt to Equity Ratio
(DERR) before and after
Distribution Date Right Issue
Debt to Equity Ratio (DER) is a ratio that measures
the capital structure of company derived from to-
tal liabilities divided by shareholder equity (Subra-
manyam et al., 2010). This ratio shows the ratio
between liabilities and corporate equity. The assets
owned by the company come from their own capital
and debt or loans. Given the Debt to Equity Ratio
(DER) ratio the proportion between capital and debt
will be seen clearly. Another theory mentions the re-
lationship between debt with the right issue. Research
conducted by (Simanullang and Daljono, 2013) states
that companies tend to use funds obtained from rights
issue activities in order to reduce the level of corpo-
rate debt. However, in practice the company not only
uses the funds from the rights issue to pay off the
debt alone, but also to conduct an expansion or buy
assets. Research conducted by (Ediningsih and Ya-
cobus, 2009) states that there are differences in Debt
to Equity Ratio (DER) before and after the Right Is-
sue. The sample used by the research is as many as
14 companies doing Right Issue. In the research the
significant value for the Debt to Equity Ratio (DER)
variable is 0.023 or below 0.05 alpha level. Research
conducted by (Simanullang and Daljono, 2013) states
that there is no significant difference of Debt to Eq-
uity Ratio (DER) before and after right issue. The
population of the study used a company listed on the
Indonesia Stock Exchange 2008-2010. Research con-
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