Artikel
Working capital management and its influence on profitability and sustainable growth
This study aims to test the effect of working capital management on firms' profitability and the effect of this relationship on sustainable growth. Our sample firms are 136 manufacturing firms listed in the Indonesian Stock Exchange from 2010 to 2017. We use data panel regression with fixed effect estimation model to analyze our data. The results demonstrate that working capital significantly affects firms' profitability. However, working capital management does not exhibit a significant direct influence on sustainable growth but a significant indirect influence through firms' profitability. Thus, this study suggests that firms need to manage their working capital to increase their profits and eventually to achieve sustainable growth. This study contributes by including sustainable growth in the analysis of the relationship between working capital and firm performance. In addition, this study will likely contribute to managers in efforts to increase sustainable growth for their enterprises through working capital management.
- Sprache
-
Englisch
- Erschienen in
-
Journal: Verslas: Teorija ir praktika / Business: Theory and Practice ; ISSN: 1822-4202 ; Volume: 20 ; Year: 2019 ; Pages: 61-68 ; Vilnius: Vilnius Gediminas Technical University
- Klassifikation
-
Management
Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
Corporate Finance and Governance: Other
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
- Thema
-
working capital management
profitability
sustainable growth
cash conversion cycle
return on assets
manufacturing industry
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Kinasih Yekti Nastiti, Pambayun
Atahau, Apriani Dorkas Rambu
Supramono, Supramono
- Ereignis
-
Veröffentlichung
- (wer)
-
Vilnius Gediminas Technical University
- (wo)
-
Vilnius
- (wann)
-
2019
- DOI
-
doi:10.3846/btp.2019.06
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Artikel
Beteiligte
- Kinasih Yekti Nastiti, Pambayun
- Atahau, Apriani Dorkas Rambu
- Supramono, Supramono
- Vilnius Gediminas Technical University
Entstanden
- 2019
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