The Determinant of Working Capital Management of Manufacturing Companies

Mias Fatimatuzzahra; Retno Kusumastuti

doi:10.29313/mimbar.v32i2.1872

The Determinant of Working Capital Management of Manufacturing Companies

Mias Fatimatuzzahra, Retno Kusumastuti

Abstract

Working capital is directly related to the operations activity of the company to produce goods. To be able to properly manage its working capital, the company must determine what factors that can affect working capital. Actually, there are many factors that affect working capital management but the factors that used in this study are firm size, leverage, firm growth, cash flow, profitability, capital expenditure, and GDP. Meanwhile, working capital management is reflected by the cash conversion cycle. By taking samples at manufacturing companies listed in Indonesia Stock Exchange period of 2010 - 2014, found there are a significant effect of firm size, firm growth, cash flow, profitability, and GDP. This is due to the leverage and capital expenditure shows insignificant effect.

Keywords

Working capital, cash conversion cycle, firm size, leverage, firm growth, cash flow, profitability, capital expenditure, GDP

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DOI: https://doi.org/10.29313/mimbar.v32i2.1872

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