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Journal : Indonesian Journal of Multidisciplinary Science

Working Capital Management, Firm Performance, Financial Constraints in Building Construction Sub-Sector During COVID-19 Pandemic Rahmawati, Mega Tri; Irawan, Tony; Santoso, Moch. Hadi
Indonesian Journal of Multidisciplinary Science Vol. 2 No. 9 (2023): Indonesian Journal of Multidisciplinary Science
Publisher : International Journal Labs

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55324/ijoms.v2i9.554

Abstract

The building construction sub-sector companies have the lowest profitability with company value continuing to decline but the most efficient working capital turnover compared to other sub-sectors in the infrastructure sector during 2018-2020. Two construction company ownership, namely BUMN and private companies, facing different financial constraints in financing working capital. The purpose of this research is to find out the differences in working capital management, firm performance, and financial constraints before and during the Covid-19 pandemic in the private companies and BUMN. Furthermore, the research attempts to see the influence of working capital management with and without the interaction of financial constraints on firm performance. This study used 12 samples of building construction sub-sector companies listed on the IDX in the 2018q-2021q using paired tests and panel data regression. The results showed that both private and BUMN experienced significant changes in the working capital management component, decreased firm performance, and increased financial constraints during the pandemic. The working capital management has a negative and significant impact on firm performance. The results of interaction between working capital management and financial constraints show that companies experience financial constraints have lower investment levels on working capital due to the expensive cost of funding. The interaction variable strengthens the effect of the cash conversion cycle on firm performance.
Co-Authors Abdullah, Feriansyah Abrar Setiawan Achsani, Noer Azham Adler Haymans Manurung Afrianto, Andri Ahmad Cahyo Nugroho Ahmad Rifai Ajeng Ayu Sabriani Alla Asmara Anny Ratnawati Anny Ratnawati Arief Anshory Yusuf Aruddy Astri Puspitasari Aziz, Lukmanul Hakim Dadang Wahyu Juniarwoko Debby Anggraeni Dedi Budiman Hakim Deviyantini Deviyantini Deviyantini, Deviyantini Djayanti Sari Djoni Hartono Dominicus Savio Priyarsono DS Priyarsono Eka Khaerandy Oktafianto Erliza Noor Faisal Azmi Feriansyah Abdullah Feriansyah, Feriansyah Futu Faturay Hakim, Dedi Budiman Hartoyo Hendri Setiadi Hendro Sasongko Hermanto Siregar Herry Suhardiyanto Hesti Werdaningtyas Indrawan, Dikky Irfan Syauqi Beik Isro'iyatul Mubarokah Isro’iyatul Mubarokah Jamhari Jamhari Juniarwoko, Dadang Wahyu Khoirul Marzuki Kusumadewi, Tiara Lukytawati Anggraeni M. Abdul Rahman Maemonah, Maemonah Meilina Pudjiani Moch. Hadi Santoso Muhammad Fauzan Fadhlani Muhammad Firdaus Mulya Syafnur Mursalin, Destrianto Noer Azham Achsani Noviyanti, Fuzi Nugraha, Dwi Tjahya Nur Maghfirah Nur Muflihatun Azizah Pudjiani, Meilina Raden Dikky Indrawan Rahmawati, Mega Tri Ranti Wiliasih Ray Agung Sucika Pratama Ready Prima Dudesy Reffi Marizka Dewi Risya Maulida Septiana Salman Fajri Salman Fajri Santoso, Moch. Hadi Saraswati, Raras Aisyah Sidiq Suryo Nugroho Solihati, Garin Pratiwi Soni Rita Purba Sri Retno Wahyu Nugraheni Sudadi Sugema, Iman Tamami, Ahmad Jihan Tony Trias Andati Trias Andati Trias Andati Vina Eka Andriyani Wanda Kharisa Ristyanti Wita Juwita Ermawati Yusman Syaukat