AICS
Vol. 3 No. 1 (2020): International Conference on Global Innovation and Trends in Economy 2020

The Effect of Working Capital Financing to the Corporate Performance and the Impact of Financial Constraints in Indonesia Manufacturing Industry

Hansel Winardi (Swiss German University)
Yosman Bustaman (Swiss German University)



Article Info

Publish Date
04 Mar 2021

Abstract

The aim of this research is to gain empirical evidence about the effect of Working Capital Financing to the Corporate Performance of the firms in Jakarta Composite Index (JCI) during the years 2010 – 2018 directly and under the impact of the moderator variable. The moderator variable used Financial Constraints. The Corporate Performance as the dependent variable was calculated by using Return on Assets (ROA) and Tobin’s Q (Q), the Working Capital Financing was calculated by using certain WCF formula, while the Financial Constraints was calculated by using dummy variable that involve some criterias which comprise Firm Size, Cash Flow, and Interest Coverage Ratio. The object of the study is the firms available in JCI in 9 consecutive years and then according to certain aspects. The number of samples should have reliable and qualified financial reports from year 2010 to 2018. Eventually, according to the data analysis and hypothesis testing, this research represented the following results : Working Capital Financing has no significant effect to the Corporate Performance, Working Capital Financing has no significant effect to the Corporate Performance under the Impact of Financial Constraints, Firm Size, Firm Leverage and Firm Growth has significant effect to the Corporate Performance, then Current Ratio has no significant effect to the Corporate Performance.

Copyrights © 2020






Journal Info

Abbrev

conferenceseries

Publisher

Subject

Computer Science & IT Control & Systems Engineering Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education

Description

ADI International Conference Series (AICS) is open access journal published by Asosiasi Dosen Indonesia. AICS (ADI International Conference Series) is Supported by ADI Publisher & Organized by Pandawan. AICS (ADI International Conference Series) provides media to publish scientific articles from ...