Role of working capital management in profitability considering the connection between accounting and finance

Morshed, Amer

doi:10.1108/ajar-04-2020-0023

Cited by 37 publications

(35 citation statements)

References 35 publications

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“…Kebijakan investasi dan pembiayaan melalui modal kerja memiliki pengaruh signifikan terhadap profitabilitas (Morshed, 2020;Pestonji & Wichitsathian, 2019). Kebijakan ini terkait dengan teori keuntungan dan resiko (Morshed, 2020). Kebijakan konservatif akan mengurangi keuntungan dan resiko, sedangkan kebijakan agresif akan berdampak sebaliknya.…”

Section: Pengaruh Modal Kerja Terhadap Kinerja Pada Kondisi Krisisunclassified

“…Kebijakan konservatif akan mengurangi keuntungan dan resiko, sedangkan kebijakan agresif akan berdampak sebaliknya. Manajemen modal kerja melalui kebijakan investasi yang lebih agresif seiring dengan keuntungan dan resiko (Morshed, 2020;Pestonji & Wichitsathian, 2019). Semakin besar investasi dalam aktiva lancar, maka semakin rendah risiko, tetapi juga semakin rendah profitabilitas yang diperoleh.…”

Section: Pengaruh Modal Kerja Terhadap Kinerja Pada Kondisi Krisisunclassified

“…Tingkat aktiva lancar yang berlebihan dapat berpengaruh negatif terhadap pendapatan. Beberapa penelitian menemukan bahwa kebijakan modal kerja yang lebih agresif mempunyai potensi terhadap peningkatan keuntungan tetapi juga berpotensi terhadap peningkatan risiko yang lebih tinggi sedangkan kebijakan konservatif mempunyai kaitan dengan tingkat keuntungan dan risiko yang lebih rendah (Altaf & Shah, 2019;Morshed, 2020;Pestonji & Wichitsathian, 2019). Meskipun beberapa penelitian menemukan hubungan yang sangat kecil dan tidak signifikan antara pembiayaan yang agresif terhadap return dan risiko (Kayani et al, 2019).…”

Section: Pengaruh Modal Kerja Terhadap Kinerja Pada Kondisi Krisisunclassified

“…Hal ini dapat disebabkan lingkungan semakin dinamis. Semakin agresif kebijakan modal kerja untuk investasi semakin berpeluang meningkatkan keuntungan yang lebih tinggi, namun juga seiring dengan risiko yang lebih tinggi (Altaf & Shah, 2019;Morshed, 2020;Pestonji & Wichitsathian, 2019). Semakin konservatif kebijakan modal kerja untuk investasi memberikan fleksibilitas untuk bertahan, adaptif, dan responsif dalam menangkap peluang-peluang baru di tengah perubahan lingkungan.…”

Section: Pembahasanunclassified

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Fleksibilitas Keuangan melalui Manajemen Modal Kerja pada Perusahaan Manufaktur dalam Kondisi Ketidakpastian

Purwanto¹

2021

JAP

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Changes in the business environment are increasingly dynamic, uncertain and unpredictable. Financial flexibility through working capital management is important for either a survival strategy, adaptive or proactive in taking advantage of opportunities for change. This study aims to examine and analyze the effect of working capital management on company profitability under uncertainty. The research design was carried out in a natural laboratory during the uncertainty period of the 2008 global financial crisis. The study was conducted by comparing working capital management and performance of 106 manufacturing companies based on data from the Indonesia Capital Market Directory around the crisis period (2007-2011). Data analysis used multiple linear regression. The effect of the financial crisis is analyzed through simulation analysis. The results of the study found that the more conservative working capital policy for investment has a positive effect on profitability performance, while the greater the short-term liabilities become an obstacle to profitability performance. However, the effect of working capital policies for financing changed during the crisis period. The proportion of working capital to finance short-term debt has a positive effect on profitability performance in crisis conditions. The results of this study have implications for the role of working capital policies for financial flexibility under conditions of crisis and uncertainty. Keywords: Financial Flexibility, Working Capital, Uncertainty

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Section: Pengaruh Modal Kerja Terhadap Kinerja Pada Kondisi Krisisunclassified

Section: Pembahasanunclassified

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Fleksibilitas Keuangan melalui Manajemen Modal Kerja pada Perusahaan Manufaktur dalam Kondisi Ketidakpastian

Purwanto¹

2021

JAP

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“…High Net Profit Margin also allows companies to improve the welfare of their employees through bonus distribution or salary increases. Morshed (2020) argues that working capital greatly influences the company's profitability. Negative working capital means that the company in carrying out its operational activities relies on short-term debt.…”

Section: Management Implicationsmentioning

confidence: 99%

Comparative Analysis of Financial Sustainability Using the Altman Z-Score, Springate, Zmijewski and Grover Models for Companies Listed at Indonesia Stock Exchange Sub-Sector Telecommunication Period 2014 – 2019

Fauzi

Sudjono

Saluy

2021

Preprint

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This study aims to compare the best bankruptcy prediction models between Altman, Springate, Zmijewski and Grover models against companies listed on the Indonesian stock exchange in the telecommunications sub-sector for the 2014-2019 period. The purposive sampling method is used to obtain a sample of companies with the following criteria: Companies listed on the Indonesian stock exchange, the telecommunications sub-sector, the company has conducted an IPO in 2010, the company is obedient in reporting annual reports from 2014 - 2019 and the company is free from delisting issues. There are 4 companies that meet the purposive sampling criteria, namely PT. Telkom TBK, PT. Indosat TBK. PT. XL Axiata TBK and PT. Smartfren TBK. The data used in this research is secondary panel data. The results showed that only PT. Telkom which is in a healthy financial condition. Meanwhile, PT. Indosat, PT. XL Axiata and PT. Smartfren is consistently in an unhealthy condition based on the analysis of the Altman and Springate models. The calculation of Zmijewski's model and Grover's model gave inconsistent results. Comparative testing of the four bankruptcy analysis models resulted in the Altman, Springate and Grover models recording accurate results but Altman modelling is the best because it is an accurate, consistent, and tested model both descriptively and statistically.

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Lessons Learned in the Recovery of Business Performance from the COVID-19 Endemic: The Importance of Working Capital Management and Financial Management

Rita

Nugrahanti

Nastiti

et al. 2023

Entrepreneurship Business Debates

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Role of working capital management in profitability considering the connection between accounting and finance

Cited by 37 publications

References 35 publications

Fleksibilitas Keuangan melalui Manajemen Modal Kerja pada Perusahaan Manufaktur dalam Kondisi Ketidakpastian

Fleksibilitas Keuangan melalui Manajemen Modal Kerja pada Perusahaan Manufaktur dalam Kondisi Ketidakpastian

Comparative Analysis of Financial Sustainability Using the Altman Z-Score, Springate, Zmijewski and Grover Models for Companies Listed at Indonesia Stock Exchange Sub-Sector Telecommunication Period 2014 – 2019

Lessons Learned in the Recovery of Business Performance from the COVID-19 Endemic: The Importance of Working Capital Management and Financial Management

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