Working Capital, Financial Constraints, and Firm Value: Evidence of Indonesia Manufacturing Firm

Gracia, E.

doi:10.31014/aior.1992.01.02.16

Cited by 8 publications

(10 citation statements)

References 3 publications

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“…A regression model's data is subjected to the normality test to determine whether or not it is regularly distributed (Gracia, 2018;Huynh, 2020;White, 1980). Data processed by SPSS method (Krishna, CEO, and IBM, 2023).…”

Section: Resultsmentioning

confidence: 99%

Sustainability Environmental Performance Future Investment for Company Value

Dwianto,

Puspitasari,

A'yun

et al. 2024

JoE

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This study investigates the financial dynamics of 182 manufacturing companies listed on the Indonesia Stock Exchange during the period 2019 to 2022, amid the COVID-19 pandemic. This study uses a quantitative approach using SPSS for regression analysis. The dataset covers the turbulent years of the COVID-19 pandemic, providing insights into the resilience and adaptability of companies during this period. This study reveals that while capital structure and dividend policy do not significantly affect firm value, firm growth, profitability and investment decisions exert a differential influence. Notably, environmental performance moderates the impact of growth and profitability on firm value, but does not significantly affect relationships involving capital structure, dividend policy, or investment decisions. This research contributes to the growing landscape of financial analysis by incorporating environmental considerations as a moderating factor. It underscores the importance of sustainable practices in improving financial performance and firm value, especially in the context of global crises such as the COVID-19 pandemic.

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Section: Resultsmentioning

confidence: 99%

Sustainability Environmental Performance Future Investment for Company Value

Dwianto,

Puspitasari,

A'yun

et al. 2024

JoE

View full text Add to dashboard Cite

show abstract

“…Financial constraint merupakan kondisi perusahaan perusahaan memiliki keterbatasan dalam memperoleh dana (Gracia 2018). Selain itu, besar kecilnya penggunaan hutang jangka pendek untuk membiayai modal kerja bergantung pada tingkat kendala keuangan yang dimiliki perusahaan, dan diharapkan bahwa perusahaan tidak mengalami kendala keuangan sehingga mampu meningkatkan modal kerjanya melalui utang jangka pendeknya (Altaf and Ahmad 2019).…”

Section: Pendahuluanunclassified

“…Terjadinya penurunan ekonomi dapat memungkinkan perusahaan berisiko dalam mengalami kendala keuangan. Kendala keuangan merupakan kondisi sebuah perusahaan yang mengalami kesulitan atau terbatas dalam memperoleh pendanaan eksternal, sehingga membuat perusahaan harus mengurangi investasinya pada modal kerja, mempercepat penagihan piutang, membatasi persyaratan pemberian piutang, melakukan likuidasi persediaan, dan melonggarkan persyaratan untuk memperoleh utang (Gracia 2018). Perusahaan yang mengalami kendala keuangan dapat kesulitan untuk memperoleh pinjaman jangka pendek dengan persyaratan yang lebih mudah dan tingkat bunga yang lebih rendah (Altaf and Ahmad 2019).…”

Section: Financial Constraintunclassified

Apakah Financial Constraint Memoderasi Pengaruh Modal Kerja Terhadap Profitabilitas Sebelum Dan Selama Pandemi Covid 19?

Putri,

Wafaretta

2023

JBA

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Working capital decisions are important for financing the operations of manufacturing companies, especially during a pandemic which indicates a decline in working capital. This study aims to examine the effect of working capital (Net Working Capital - NWC) on the profitability of manufacturing companies on the Indonesia Stock Exchange (IDX) during non-pandemic and pandemic conditions covid-19, as well as testing the moderating effect of financial constraint. The sample is determined by technique purposive sampling for manufacturing companies from 2018-2021 and analyzed with moderation regression. Results do not confirm Resource-Based Theory where working capital has a significant negative effect on profitability because high working capital creates additional costs that can reduce profits. In addition, the data shows that each sub-sector has different characteristics in terms of working capital requirements and profit-generating capabilities. There are sub-sectors with low (high) working capital that have high (low) profitability. This negative direction of working capital and profits continued until the pandemic conditions, of course, several sub-sectors experienced a decline in profitability. This study also shows that there is no moderating effect financial constraint, but financial constraint has a significant positive effect on profitability. The lower financial constraint, the company's profits continued to decline which could be due to the company's less than optimal management of available funds. The theoretical and practical implications of this study are unconfirmed Resource-Based Theory due to differences in sub-sector and company characteristics. The results show the importance of management in managing working capital optimally to profitability even in pandemic and financial constraints.

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“…Veronica dan Rasyid (2020) juga menggunakan pendekatan RBV dengan penjelasan perusahaan dinyatakan mampu untuk memperoleh keunggulan kompetitif apabila perusahaan mempunyai sumber daya unggul. Untuk meningkatkan perbedaan kompetensi perusahaan, perusahaan membutuhkan kemampuan menagatur sumberdaya, bukan hanya memiliki (Gracia & Lukman, 2023).…”

Section: Kajian Teoriunclassified

Analisis Faktor Penentu Performa Perusahaan Manufaktur Yang Tercatat Bei Tahun 2017-2020

Sabdaputra,

Rasyid

2023

JPA

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The purpose of this research is to obtain empirical evidence on the influence of leverage, asset structure, liquidity, company size, non-debt tax shields, and managerial ownership of the performance of manufacturing companies listed on the Indonesia Stock Exchange for the period 2017-2020. Sampling in this study used purposive sampling methods and obtained 48 samples of manufacturing companies listed on the Indonesia Stock Exchange for the period 2017-2020. The study used the Eviews 12 and Microsoft Excel 2016 software programs to manage data. The results of this study showed that leverage and asset structure had a negative influence on the company's performance, liquidity and non-debt tax shields had no negative influence on the company's performance while the size of the company and managerial ownership did not have a positive influence on the company's performance. The implication of this research is the need to reduce the use of debt to minimize the interest expense of the debt which will increase the company's profit so as to improve the company's performance which will provide good information for investors.

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Working Capital, Financial Constraints, and Firm Value: Evidence of Indonesia Manufacturing Firm

Abstract: The Journal of Economics and Business is an Open Access publication. It may be read, copied and distributed free of charge according to the conditions of the Creative Commons Attribution 4.0 International license.

Cited by 8 publications

References 3 publications

Sustainability Environmental Performance Future Investment for Company Value

Sustainability Environmental Performance Future Investment for Company Value

Apakah Financial Constraint Memoderasi Pengaruh Modal Kerja Terhadap Profitabilitas Sebelum Dan Selama Pandemi Covid 19?

Analisis Faktor Penentu Performa Perusahaan Manufaktur Yang Tercatat Bei Tahun 2017-2020

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