Working Capital Management on Profitability with Company Size as Moderating Variable

Authors

  • Dinarossi Utami Universitas Muhammadiyah Palembang
  • Frecilia Nanda Melvani Universitas Tridinanti Palembang

DOI:

https://doi.org/10.5281/zenodo.7275596

Abstract

The primary consumer goods sector is an industry that is not affected by economic growth but instead supports the Indonesian economy. This study examines the effect of working capital management on profitability with firm size as a moderating variable in companies in the primary consumer goods sector listed on the Indonesia Stock Exchange. The research sample was fifty-seven companies with a research period from 2010 to 2020. The data analysis techniques used were panel data regression analysis and Moderated Regression Analysis (MRA). The study's dependent variable is the company's profitability; the independent variable is working capital management, including cash turnover, inventory turnover and cash cycle, and several control variables such as debt, capital, income, quick ratio and current ratio. The results showed that with firm size as a moderating variable, there was an overall increase in the correlation to the profitability variable. The interaction of working capital management variables with company size strengthens the effect of working capital management variables on company profitability in the primary consumer goods sector.

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Published

2022-11-22

How to Cite

Utami, D., & Melvani, F. N. (2022). Working Capital Management on Profitability with Company Size as Moderating Variable. Jurnal Aplikasi Manajemen Dan Bisnis, 3(1), 33–41. https://doi.org/10.5281/zenodo.7275596

Issue

Vol. 3 No. 1 (2022): Jurnal Aplikasi Manajemen dan Bisnis Oktober 2022

Section

Articles

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