Impact of Aggressive Working Capital Policy on Firms’ Profitability: A Case of Manufacturing Companies Listed Indonesia Stock Exchange

Rasyid, Rosyeni and Linda, Muthia Roza (2016) Impact of Aggressive Working Capital Policy on Firms’ Profitability: A Case of Manufacturing Companies Listed Indonesia Stock Exchange. In: Proceeding International Conference Local wisdom for Re-Thinking Global Solutions, 21-23 September 2016, Padang.

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Abstract

The working capital management plays an important role for success or failure of firm in business. This study aimed to examine the effect of aggressive working capital policies within the company. By focusing the company's policy on the policy of aggressive working capital financing is measured by the variable Aggressive Financing Policy, Leverage and Size, the company's profitability as measured by return on assets and net operating income profitability. Using 102 data from manufacturing companies in Indonesia Stock Exchange during the period 2009-2014 with a certain pre-determined criteria. For regard this research adopted ordinary least square regression method for research approach to test a research hypothesis. The result of study showed that there is significant positive relationship between aggressive financing policy on return on assets, and relation between financing policy on net operating profitability positive but no significant. This indicates that the more aggressive company in the finding it will greater benefit.

Item Type: Conference or Workshop Item (Paper)
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Fakultas Ekonomi > Manajemen - S1
Depositing User: Mrs. Wiwi Sartika
Date Deposited: 02 Mar 2017 06:59
Last Modified: 02 Mar 2017 06:59
URI: http://repository.unp.ac.id/id/eprint/688

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