Jurnal Ekonomi
Vol. 12 No. 02 (2023): Jurnal Ekonomi, Perode April - Juni 2023

THE EFFECT OF CASH FLOW, LEVERAGE, GROWTH OPPORTUNITIES AND COMPANY SIZE ON WORKING CAPITAL MANAGEMENT

Fajar Rakasiwi Syamsuddin (Universitas Terbuka)



Article Info

Publish Date
17 Apr 2023

Abstract

This study aims to determine the relationship between Cash Flow, Leverage, Growth Opportunities and Company Size on Working Capital Management as measured by the Cash Conversion Cycle. This study uses a quantitative approach with multiple regression analysis tools. Sample Using food and beverage sub-sector manufacturing companies listed on the Indonesian stock exchange. The dependent variable is working capital management proxied by the cash conversion cycle. The longer the cycle, the more funds are invested in working capital, indicating the need for additional capital. While the independent variables consist of cash flow, leverage, growth opportunities and company size. This study found that growth opportunities and debt policies had a positive and significant effect on the company's working capital management. Aggressive selling and use of debt will result in a longer cash conversion cycle for the company. This study also found that company size and cash flow had no effect on the company's working capital management.

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Journal Info

Abbrev

Ekonomi

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomi [p. ISSNĀ 2301-6280, e. ISSNĀ 2721-9879] is a peer-reviewed journal published Half times a year (June, and December) by SEAN Institute. Jurnal Ekonomi is intended to be the journal for publishing articles reporting the results of economics research. Jurnal Ekonomi invites manuscripts ...