THE EFFECTS OF WORKING CAPITAL MANAGEMENT ON THE PROFITABILITY OF INDONESIAN MANUFACTURING FIRMS
This thesis studies the effect of working capital management and its components toward the profitability of Indonesian manufacturing companies. Cash Conversion Cycle is used as a comprehensive measure for working capital management and Return on Asset used as a measure for profitability. Furthermore...
| Main Authors: | , |
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| Format: | Thesis |
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[Yogyakarta] : Universitas Gadjah Mada
2013
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| Subjects: |
| _version_ | 1826047453757964288 |
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| author | , Ibnu Mirza , Dr. Sumiyana, M.Si., Akt. |
| author_facet | , Ibnu Mirza , Dr. Sumiyana, M.Si., Akt. |
| author_sort | , Ibnu Mirza |
| collection | UGM |
| description | This thesis studies the effect of working capital management and its
components toward the profitability of Indonesian manufacturing companies.
Cash Conversion Cycle is used as a comprehensive measure for working capital
management and Return on Asset used as a measure for profitability.
Furthermore there are control variables such as firm size and growth. This study
is based on a sample of 133 manufacturing companies listed in Indonesia Stock
Exchanges for a period of 3 years: 2009 - 2011.
The results of multiple regression analysis found that there is no
significant effect of working capital management on profitability. This implies that
firms which wait longer to pay their payables to supplier and which grant a
longer credit period to their customers not necessarily to generate more profit.
While, the firm size does have positive and significant effect on profitability. This
indicates that bigger firms tend to have higher profitability. Finally, there is
positive and significant effect of growth on profitability which indicates firms
which have higher growth that could be means have higher employee motivation
and performance and also higher attractiveness for business partners have higher
profitability. |
| first_indexed | 2024-03-13T23:11:08Z |
| format | Thesis |
| id | oai:generic.eprints.org:125586 |
| institution | Universiti Gadjah Mada |
| last_indexed | 2024-03-13T23:11:08Z |
| publishDate | 2013 |
| publisher | [Yogyakarta] : Universitas Gadjah Mada |
| record_format | dspace |
| spelling | oai:generic.eprints.org:1255862016-03-04T08:39:09Z https://repository.ugm.ac.id/125586/ THE EFFECTS OF WORKING CAPITAL MANAGEMENT ON THE PROFITABILITY OF INDONESIAN MANUFACTURING FIRMS , Ibnu Mirza , Dr. Sumiyana, M.Si., Akt. ETD This thesis studies the effect of working capital management and its components toward the profitability of Indonesian manufacturing companies. Cash Conversion Cycle is used as a comprehensive measure for working capital management and Return on Asset used as a measure for profitability. Furthermore there are control variables such as firm size and growth. This study is based on a sample of 133 manufacturing companies listed in Indonesia Stock Exchanges for a period of 3 years: 2009 - 2011. The results of multiple regression analysis found that there is no significant effect of working capital management on profitability. This implies that firms which wait longer to pay their payables to supplier and which grant a longer credit period to their customers not necessarily to generate more profit. While, the firm size does have positive and significant effect on profitability. This indicates that bigger firms tend to have higher profitability. Finally, there is positive and significant effect of growth on profitability which indicates firms which have higher growth that could be means have higher employee motivation and performance and also higher attractiveness for business partners have higher profitability. [Yogyakarta] : Universitas Gadjah Mada 2013 Thesis NonPeerReviewed , Ibnu Mirza and , Dr. Sumiyana, M.Si., Akt. (2013) THE EFFECTS OF WORKING CAPITAL MANAGEMENT ON THE PROFITABILITY OF INDONESIAN MANUFACTURING FIRMS. UNSPECIFIED thesis, UNSPECIFIED. http://etd.ugm.ac.id/index.php?mod=penelitian_detail&sub=PenelitianDetail&act=view&typ=html&buku_id=65755 |
| spellingShingle | ETD , Ibnu Mirza , Dr. Sumiyana, M.Si., Akt. THE EFFECTS OF WORKING CAPITAL MANAGEMENT ON THE PROFITABILITY OF INDONESIAN MANUFACTURING FIRMS |
| title | THE EFFECTS OF WORKING CAPITAL MANAGEMENT
ON THE PROFITABILITY OF INDONESIAN
MANUFACTURING FIRMS |
| title_full | THE EFFECTS OF WORKING CAPITAL MANAGEMENT
ON THE PROFITABILITY OF INDONESIAN
MANUFACTURING FIRMS |
| title_fullStr | THE EFFECTS OF WORKING CAPITAL MANAGEMENT
ON THE PROFITABILITY OF INDONESIAN
MANUFACTURING FIRMS |
| title_full_unstemmed | THE EFFECTS OF WORKING CAPITAL MANAGEMENT
ON THE PROFITABILITY OF INDONESIAN
MANUFACTURING FIRMS |
| title_short | THE EFFECTS OF WORKING CAPITAL MANAGEMENT
ON THE PROFITABILITY OF INDONESIAN
MANUFACTURING FIRMS |
| title_sort | effects of working capital management on the profitability of indonesian manufacturing firms |
| topic | ETD |
| work_keys_str_mv | AT ibnumirza theeffectsofworkingcapitalmanagementontheprofitabilityofindonesianmanufacturingfirms AT drsumiyanamsiakt theeffectsofworkingcapitalmanagementontheprofitabilityofindonesianmanufacturingfirms AT ibnumirza effectsofworkingcapitalmanagementontheprofitabilityofindonesianmanufacturingfirms AT drsumiyanamsiakt effectsofworkingcapitalmanagementontheprofitabilityofindonesianmanufacturingfirms |