The Effect of Working Capital Management on Financial Performance Companies with Liquidity as Mediation in Trading Companies on the Indonesia Stock Exchange (IDX)

DOI

10.2991/978-94-6463-158-6_59How to use a DOI?

Keywords

Cash Conversion Cycle; Inventory Period; Receivable Period; Payable Period; Liquidity; Financial Performance

Abstract

This study aims to determine the impact of working capital management on the company’s financial performance through liquidity as a mediation in trading company on the IDX. The population in this study are trading companies listed on the Indonesia Stock Exchange for the period 2016 to 2020 using secondary data. The sampling technique used was purposive sampling. The number of samples in this study were 215 samples. The data analysis method used is SEM, namely path analysis with the help of the SPSS AMOS 22 program. The results show that the cash conversion cycle has a significant and negative effect on financial performance, the inventory period has a significant and negative effect on financial performance, the receivable period has a significant and negative effect on financial performance, the payable period has no and no significant effect on financial performance, the cash conversion cycle has no and no significant effect on liquidity, the inventory period has no and no significant effect on liquidity, the receivable period has a significant and positive effect on liquidity, the payable period has a significant and positive effect on liquidity, liquidity cannot mediate the relationship between the cash conversion cycle on financial performance, liquidity cannot mediate the relationship between inventory period and financial performance, liquidity can mediate the relationship between the receivables period on financial performance, liquidity can mediate the relationship between the payable period on financial performance, liquidity has a significant and positive effect on financial performance.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Laura Arifah Hanum
AU  - Erni Masdupi
PY  - 2023
DA  - 2023/06/26
TI  - The Effect of Working Capital Management on Financial Performance Companies with Liquidity as Mediation in Trading Companies on the Indonesia Stock Exchange (IDX)
BT  - Proceedings of the Ninth Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA 2022)
PB  - Atlantis Press
SP  - 676
EP  - 689
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-158-6_59
DO  - 10.2991/978-94-6463-158-6_59
ID  - Hanum2023
ER  -