Integrated Corporate Governance Model Innovation for Working Capital Management
- DOI
- 10.2991/aebmr.k.200410.029How to use a DOI?
- Keywords
- integrated corporate governance model innovation, working capital management, interrelated, profitability, business risk
- Abstract
Working capital management is a short-term investment decision funded by current liabilities consisting of interrelated components, namely: cash, receivables, securities and inventories, that have different agency relationships yet interrelated. Until recently corporate governance was not integrated, so it was not effective in increasing companies’ liquidity and profitability. The purpose of this study is to develop an integrated corporate governance framework model innovation for working capital management. This research was conducted by reviewing articles related to corporate governance and working capital management, finding gaps among them, and identifying their limitations. The results show that the integrated corporate governance model innovation for working capital management is able to determine the composition of optimal working capital so as to increase liquidity, profitability, and reduce business risk. This research, theoretically, develops agency theory and good corporate governance model in managing working capital and, practically, provides information for managers and investors in short term investment decisions and financing decisions.
- Copyright
- © 2020, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Mutamimah AU - D. Agus Harjito PY - 2020 DA - 2020/04/13 TI - Integrated Corporate Governance Model Innovation for Working Capital Management BT - Proceedings of the 3rd Asia Pacific International Conference of Management and Business Science (AICMBS 2019) PB - Atlantis Press SP - 195 EP - 199 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.200410.029 DO - 10.2991/aebmr.k.200410.029 ID - 2020 ER -