scholarly journals Nonlinear Relationship Between Working Capital and Firm Performance Moderated by Financial Constraints on Manufacture Firms Listed in Indonesia Stock Exchange

2020 ◽  
Author(s):  
Azizah Rarasati Widhyadji ◽  
Farah Margaretha Leon
Keyword(s):  
Firm Performance ◽  
Financial Constraints ◽  
Stock Exchange ◽  
Nonlinear Relationship ◽  
Working Capital

scholarly journals Evaluasi Pengaruh Financial Constraints terhadap Hubungan antara Working Capital Financing dengan Firm Performance

2021 ◽  
Vol 5 (4) ◽  
pp. 408
Author(s):  
Maria Angelica Brigita ◽  
Indra Widjaja
Keyword(s):  
Firm Performance ◽  
Consumer Goods ◽  
Financial Constraints ◽  
Stock Exchange ◽  
Shape Effect ◽  
Working Capital ◽  
Purposive Sampling ◽  
Mining Companies ◽  
Non Linear ◽  
Capital Financing

The purpose of this research is to examine the influence of working capital financing toward firm performance with a moderating effect from financial constraints in consumer goods and mining companies listed in Indonesia Stock Exchange from year 2014 until 2018. The sample was determined by purposive sampling method. The research conducted by taking 40 consumer goods companies and 41 mining companies. This research used Eviews program version 11 and use GMM to process obtained data from the research sample. The result of this research shows that working capital financing has positive and non-linear (inverted u shape) effect on firm performance. This research also shows that financial constraints has positively effect on non-linear relationship between working capital financing and firm performance.  Tujuan dari penelitian ini adalah untuk menguji pengaruh dari working capital financing terhadap firm performance dengan efek moderasi dari financial constraints pada perusahaan consumer goods dan mining yang terdaftar di Bursa Efek Indonesia dari tahun 2014 hingga tahun 2018. Sampel penelitian ini ditentukan dengan menggunakan metode purposive sampling. Penelitian ini dilakukan atas 40 perusahaan consumer goods dan 41 perusahaan mining. Penelitian ini menggunakan aplikasi pengolah data Eviews versi 11 dan menggunakan metode GMM untuk mengolah data yang diperoleh dari sampel penelitian. Hasil dari penelitian ini menunjukkan bahwa working capital financing memiliki pengaruh yang positif dan non-linier (berbentuk huruf U terbalik) terhadap firm performance. Penelitian ini juga menunjukkan bahwa financial constraints memiliki pengaruh yang positif terhadap hubungan non-linier antara working capital financing dan firm performance. 

scholarly journals Working Capital Management and Firm Performance

2018 ◽  
Vol 2 (2) ◽  
pp. 37-50
Author(s):  
Sunday Simon ◽  
Norfaiezah Sawandi ◽  
Mohamad Ali Abdul-Hamid
Keyword(s):  
Firm Performance ◽  
Financial Crisis ◽  
Stock Exchange ◽  
Explanatory Power ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Crisis Period ◽  
Listed Firms ◽  
Significant Difference

This study examines the relationship between working capital management (WCM) and firm performance during and after the financial crisis of 2007-2008 in Nigeria. During the crisis, lending conditions were deeply affected, and financing operations became challenging for firms. Although research findings on the causes and effects of the crisis on the economy are known, what remains unknown is whether the financial crisis had a significant impact on WCM performance. This knowledge is essential for developing resilience to withstand a possible crisis in the future because vulnerability remains high as a result of the deepened integration of many economies. Thus, this study addresses this issue using a sample of 675 firm-year observations from listed firms on the Nigerian stock exchange for the period from 2007 to 2015. The differences between the two periods, the crisis period and then after the crisis period, is operationalised through two analyses. First, OLS regression analysis was conducted to determine the explanatory powers of WCM for the two periods via their R2s. Second, a test of difference using the Cramer Z-statistic for the two periods was conducted. The findings indicate that WCM variables have more explanatory power (R2) in the period after the crisis than during the crisis. Also, the results revealed that the Z-scores are significant, implying that a significant difference existed between the two periods. This means that WCM was affected during the financial crisis and led to low profitability, whereas, during the after-crisis period, WCM associates with higher profitability.

scholarly journals The Relationship between Working Capital Management, Financial Constraints and Performance of Listed Companies in Tehran Stock Exchange

2017 ◽  
Vol 10 (2) ◽  
pp. 248 ◽  
Author(s):  
Ali Kowsari ◽  
Mohammad Reza Shorvarzi
Keyword(s):  
Financial Constraints ◽  
Negative Impact ◽  
Stock Exchange ◽  
Listed Companies ◽  
Capital Management ◽  
Working Capital ◽  
Cross Sectional ◽  
Working Capital Management ◽  
And Performance ◽  
The Relationship

The main objective of this study was to investigate the relationship between working capital management, financial constraints and performance of listed companies in Tehran Stock Exchange. To verify this financial information from 148companies listed on the Tehran Stock Exchange during the period 2009- 2013 were studied. Information required extracted from Rah Avard Novin 3 software, and thensummarized, classified, and calculated by Microsoft Excel, and finally through Eviews 8 and Stata 12 software were analyzed. According to the statistical procedures conducted in 95/0 reliability, the assumptions are tested. methods of the study are inductive reasoning and in terms of time are cross-sectional and in terms of relationship between variables is correlation. the results showed that ROA has a negative impact on working capital management. While financial constraints affect the relationship between working capital management and return on assets. better management of working capital can improve companies’ performance. On the other hand, effect of working capital on companies’ performance would be increased when facing financial constraint.

scholarly journals THE EFFECT OF WORKING CAPITAL ON FIRM PERFORMANCE

2018 ◽  
Vol 2 (2) ◽  
pp. 232-244
Author(s):  
Indah Wahyuni ◽  
Seto Sulaksono Adi Wibowo
Keyword(s):  
Firm Performance ◽  
Stock Exchange ◽  
Capital Good ◽  
Working Capital ◽  
Independent Variables ◽  
Cash Conversion Cycle ◽  
Good Working ◽  
Net Profit ◽  
Inventory Turnover ◽  
Positive Effect

This study aims to examine the effect of working capital on firm performance. To implement the operating activities, the company should be able to manage good working capital. Good working capital management can help to enhance the firm performance in the eyes of investors. In this research, working capital is measured using working capital turnover, inventory turnover, days of supply, and cash conversion cycle as independent variables, while firm performance is measured using net profit margin as the dependent variable. The sample of this research is a manufacturing company listed in Indonesia Stock Exchange (IDX) period 2014-2016. Samples were taken by using purposive sampling and meeting the sample criteria. The anaysis technique used in this research is multiple regression analysis by using t test. The results of the study found that working capital turnover, days of supply, and cash conversion cycle negatively affect the performance of the company. While the variable of inventory turnover shows that inventory turnover has a positive effect on firm performance.

Working capital financing, firm performance and financial constraints

2019 ◽  
Vol 15 (4) ◽  
pp. 464-477 ◽  
Author(s):  
Nufazil Altaf ◽  
Farooq Ahmad
Keyword(s):  
Firm Performance ◽  
Financial Constraints ◽  
Emerging Market ◽  
Generalized Method Of Moments ◽  
Working Capital ◽  
Content Type ◽  
Capital Financing ◽  
Financing Performance ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between working capital financing and firm performance for a sample of 437 non-financial Indian companies. In addition, this study examines the impact of financial constraints on working capital financing–performance relationship. Design/methodology/approach The study is based on secondary financial data of 437 non-financial Indian companies obtained from Capitaline database, pertaining to a period of 10 years (2007–2016). This study employs two-step generalized method of moments techniques to arrive at results. Findings Results of the study confirm the inverted U-shape relationship between working capital financing and firm performance. In addition, the authors also found that the firms that are likely to be less financially constrained can finance greater proportion of working capital using short-term debt. Originality/value This study contributes to the scant existing literature by testing the impact of financial constraints on the relationship between working capital financing and firm performance, representing a typical emerging market in India.

Working capital management, firm performance and financial constraints

2017 ◽  
Vol 9 (3) ◽  
pp. 206-219 ◽  
Author(s):  
Nufazil Altaf ◽  
Farooq Shah
Keyword(s):  
Firm Performance ◽  
Method Of Moments ◽  
Financial Constraints ◽  
Generalized Method Of Moments ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between working capital management and firm performance for a sample of 437 non-financial Indian companies. In addition, this paper examines the impact of financial constraints on working capital management-performance relationship. Design/methodology/approach This study is based on secondary financial data of 437 non-financial Indian companies obtained from CAPITALINE database, pertaining to a period of ten years. This study employs the two-step generalized method of moments (GMM) technique to arrive at results. Findings Results of the study confirm the inverted U-shape relationship between working capital management and firm performance. In addition, the authors also found that the firms that are likely to be more financially constrained have lower optimal working levels. Originality/value Unlike prior studies, which found a linear relationship between working capital management and firm performance, this study provides newer evidence for an inverted U-shaped relation between investment in working capital and firm performance in India. In addition, this study also tests the impact of financial constraints on this relationship. In contrast to the prior studies, this study uses GMM to control the potential problems of endogeneity.

PENGARUH CASH CONVERSION CYCLE DAN WORKING CAPITAL TURNOVER TERHADAP RETURN ON ASSET PADA INDUSTRI BARANG KONSUMSI YANG TERDAFTAR DI BURSA EFEK INDONESIA

2015 ◽  
Vol 5 (2) ◽  
pp. 50
Author(s):  
Mohammad Herli ◽  
Hafidhah ,
Keyword(s):  
Consumer Goods ◽  
Stock Exchange ◽  
Quantitative Approach ◽  
Working Capital ◽  
Return On Assets ◽  
Cash Conversion Cycle ◽  
Consumer Goods Industry

This study aimed to examine the effect of the Cash Conversion Cycle and Working Capital Turnover on Return on Assets At the Consumer Goods Industry Listed in Indonesia Stock Exchange (IDX). The method used in this research is the quantitative approach. Results showed variable cash conversion cycle (CCC) and working capital turnover (WCT) simultaneously have a significant effect on profitability (Return on Total Assets). Variabel cash conversion cycle (CCC) partially not have a significant impact on profitability (Return on Total Assets) but variable working capital turnover (WCT) partially have a significant impact on profitability (Return on Total Assets) consumer goods industry issuers listed on the Indonesia Stock Exchange during the period 2010-2014. Keyword : Cash Conversion Cycle, Working Capital Turnover, Return on Assets

Factors That Influence Financial Performance

2019 ◽  
Vol 118 (5) ◽  
pp. 1-8
Author(s):  
Nursito ◽  
Yulianto Hadi ◽  
Dewi Puspaningtyas Faeni
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Debt Ratio ◽  
Working Capital ◽  
Current Ratio ◽  
Feed Industry ◽  
Livestock Feed ◽  
Net Profit ◽  
Asset Turnover ◽  
Equity Ratio

This study aims to test empirically the factors that affect financial performance: current ratio, debt ratio, debt to equity ratio, total asset turnover, working capital turnover and net profit margin on return on investment in subsector of livestock feed industry listed in Indonesia Stock Exchange during the period 2006-2015.

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