Authors :
Ardani Asmadi; Djoko Hanantijo
Volume/Issue :
Volume 5 - 2020, Issue 11 - November
Google Scholar :
http://bitly.ws/9nMw
Scribd :
https://bit.ly/2ULYJiR
Abstract :
Currently, the problem of the company's
ability to manage its working capital has an impact on
the financial performance of trading companies. In
working capital management so that there is an increase
in profitability in terms of Return On Assets (ROA).
Several factors that influence Return On Assets and are
of concern include Net Trade Cycle (NTC), Average
Collection Period (ACP). The existence of financial
constraints, one of which is the Dividend Payout Ratio
(DPR), is also a problem and needs to be considered in
working capital management. The purpose of this study
on registered wholesaler sub-sector companies on the
Indonesia Stock Exchange is to investigate the effect of
working capital management on company performance
with the consideration of financial constraints. The
research method in this study uses a quantitative
approach. The main results in this study reveal that the
Dividend Payout Ratio significantly moderates the effect
of the Average Collection Period on Return On Assets.
However, the Dividend Payout Ratio was unable to
moderate the effect of the Net Trade Cycle on Return On
Assets. Contributions from this study can provide insight
and understanding for financial practitioners financial
managers, finance directors and shareholders in
managing the company's working capital, specifically in
large trading sub-sector companies listed on the
Indonesia Stock Exchange
Keywords :
Average Collection Period (ACP); Deviden Payout Ratio (DPR); Net Trade Cycle (NTC); Return On Assets (ROA).
Currently, the problem of the company's
ability to manage its working capital has an impact on
the financial performance of trading companies. In
working capital management so that there is an increase
in profitability in terms of Return On Assets (ROA).
Several factors that influence Return On Assets and are
of concern include Net Trade Cycle (NTC), Average
Collection Period (ACP). The existence of financial
constraints, one of which is the Dividend Payout Ratio
(DPR), is also a problem and needs to be considered in
working capital management. The purpose of this study
on registered wholesaler sub-sector companies on the
Indonesia Stock Exchange is to investigate the effect of
working capital management on company performance
with the consideration of financial constraints. The
research method in this study uses a quantitative
approach. The main results in this study reveal that the
Dividend Payout Ratio significantly moderates the effect
of the Average Collection Period on Return On Assets.
However, the Dividend Payout Ratio was unable to
moderate the effect of the Net Trade Cycle on Return On
Assets. Contributions from this study can provide insight
and understanding for financial practitioners financial
managers, finance directors and shareholders in
managing the company's working capital, specifically in
large trading sub-sector companies listed on the
Indonesia Stock Exchange
Keywords :
Average Collection Period (ACP); Deviden Payout Ratio (DPR); Net Trade Cycle (NTC); Return On Assets (ROA).
