Pengaruh Pengelolaan Modal Kerja Terhadap Profitabilitas Dan Likuiditas Dengan Siklus Bisnis Sebagai Variabel Moderasi

Abstract

This study aims to examine and analyze the effect of working capital management on profitability and liquidity with the business cycle as a moderating variable. The research is quantitative by using secondary data in the form of financial statements, the population used is a manufacturing company with a sample of 81 companies from 2005 to 2015. Data management has done by using SPSS (Statistical Program for Social Science). The results reveal that inventory turnover has no significant effect on profitability, accounts receivable turnover and debt turnover has significant negative effect on profitability, so the cash conversion cycle negatively does not give an affect of profitability due to business cycle conditions that fluctuated from 2005 to 2015. Inventory turnover, accounts receivable turnover, debt turnover and cash conversion cycle have significant negative effect on liquidity. Business cycles (D1) and (D2) are moderate management of working capital towards profitability. The business cycle (D1) is moderates the management of working capital towards liquidity and the business cycle (D2) is not moderate the management of working capital towards liquidity.

The Business Cycle as a Moderator of Financing for Financing Risk of Islamic Commercial Banks in Indonesia

“…The duration of a recession is usually a minimum of half a year in a row. Meanwhile, if the output graph grows well to exceed its general performance, it is commonly referred to as a booming condition (Yahya, 2019). The duration of the business cycle, according to economic experts, can be divided into three: short-term cycle (about 40 months), medium-term cycle (7-11 years), and long-term cycle (48-60 years) (Rahardja & Manurung, 2005).…”

“…Business cycle trends are usually explained through variations around trends. The indicator used to analyze the business cycle is the growth of Gross Domestic Product (GDP) (Nosheen & Rashid, 2019;Yahya, 2019). GDP growth can reflect macroeconomic conditions, performance, and swings (Ben Bouheni et al, 2022).…”

“…In addition, high GDP growth will positively impact the increase in income and savings so that a positive impact on the performance of sharia banking (Sandika, 2013). Yahya (2019) discovered empirically that the business cycle can improve financial performance (ROA) and moderate working capital management on financial performance. Ben Bouheni et al (2022) revealed that the business cycle during the economic recession impacted decreasing loan and asset returns, further increasing non-performing financing.…”

“…(3) (4) The business cycle in this study is measured through a proxy for GDP growth (Ben Bouheni et al, 2022;Yahya, 2019). The business cycle for the period 2017-2021 is obtained from the BPS (2021) with the formula: GDP Growth = GDPt -GDPt-1 x 100% GDPt-1…”

“…The previously mentioned studies on financing relationships, business cycles, financial performance, and financing risk have not examined the moderating effect of the business cycle of mudharaba, musharaka, and Murabaha financing on financing risk. Previous research has generally made the Business Cycle a modernization of working capital management to profitability and liquidity (Yahya, 2019), profitability to problem financing (Ben Bouheni et al, 2022), and financial development against financing risk (Tran & Nguyen, 2020). The moderating effect of the business cycle on Islamic Bank financing on Financing Risk (NPF) is offered as a novelty to researchers to see the interaction between macroeconomic conditions on financing and Islamic Bank Financing Risk in Indonesia.…”