Journal Dialectica (Journal of Accounting Research)
Vol. 1 No. 1 (2026): Dialectica : Journal of Accounting Research

THE EFFECT OF FINANCIAL MANAGEMENT PRACTICES ON PROFITABILITY IN IDX-LISTED COMPANIES

Adel Adel (Institut Agama Islam Negeri Kerinci)
Endah Sri Wahyuni (Institut Agama Islam Negeri Kerinci)
Elvi Nilda (Institut Agama Islam Negeri Kerinci)
Samsul Bahry Harahap (Institut Agama Islam Negeri Kerinci)
Bustami Bustami (Institut Agama Islam Negeri Kerinci)



Article Info

Publish Date
30 Mar 2026

Abstract

Research Objectives: To analyze the effect of cash management, inventory management, and cost management on the profitability of companies listed on the Indonesia Stock Exchange (IDX).​ Design/ Methodology / Approach Research: A quantitative research design with a causal-associative approach. The study utilized secondary data from corporate financial statements. Data analysis was performed using multiple linear regression, preceded by classical assumption tests (normality, multicollinearity, and heteroskedasticity) with SPSS software. Research Results: The analysis revealed that partially, the variables of cash management, inventory management, and cost management do not have a significant effect on profitability. The simultaneous test (F-test) also indicated that these three variables jointly do not significantly affect profitability. The low coefficient of determination (R²) indicates the model has limited explanatory power.​ Implications of Research Results: The profitability of the studied companies is likely influenced by other factors beyond the model, such as investment strategies, capital structure, operational efficiency, and market conditions. Companies are advised not to focus solely on managing cash, inventory, and costs but to also consider other strategic factors to enhance profitability.

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Journal Info

Abbrev

dialectica

Publisher

Subject

Description

The Journal Dialectica (Journal of Accounting Research) is a peer-reviewed periodical committed to disseminating original, conceptual, and empirical research findings in the fields of accounting and finance. This journal aims to serve as a platform for critical and constructive academic discourse ...