THE DETERMINANT OF WORKING CAPITAL MANAGEMENT OF MANUFACTURING COMPANIES
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
Author: Mias Fatimatuzzahra,
Retno Kusumastuti
Journal Code: jpsosiologigg160038
