Working Capital Management Effect in Indonesia and Thailand Manufacturing Sector

DOI

10.2991/aebmr.k.210831.030How to use a DOI?

Keywords

Working Capital Management, Indonesia, Thailand Manufacturing

Abstract

This research aims to analyze working capital management in selected manufacturing firms in Indonesia and Thailand. Database of 216 companies is selected for the ten years from 2008-2017. The cash conversion cycle is the measuring tool to calculate the efficiency of working capital management. Tobin’s Q was used to examine market valuation. Meanwhile, Return On Asset was used to represent profitability. Leverage, firm size, firm age, growth opportunities, and economic conditions are taken as control variables. The study used panel data and regression analysis to test the hypothesis. The study results show similar things for both countries that there is a significant negative effect between cash conversion cycle and manufacturing firm’s profitability in Indonesia and Thailand. Meanwhile, the cash conversion cycle proved to have no significant effect on firms’ value in Indonesia and Thailand.

Copyright

© 2021, 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/).

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TY  - CONF
AU  - Amalina Syaharani
AU  - Dony Abdul Chalid
PY  - 2021
DA  - 2021/09/02
TI  - Working Capital Management Effect in Indonesia and Thailand Manufacturing Sector
BT  - Proceedings of the 5th Global Conference on Business, Management and Entrepreneurship (GCBME 2020)
PB  - Atlantis Press
SP  - 145
EP  - 152
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210831.030
DO  - 10.2991/aebmr.k.210831.030
ID  - Syaharani2021
ER  -