Proceedings of the Sixth Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA 2020)

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The Effect of Working Capital on the Profitability in Property and Real Estate Companies Listed on The Indonesian Stock Exchange (IDX)

Authors
Gebrie Dwi Irhamna, Erni Masdupi
Corresponding Author
Gebrie Dwi Irhamna
Available Online 17 June 2021.
DOI
10.2991/aebmr.k.210616.032How to use a DOI?
Keywords
Working Capital, Profitability, Control Variables
Abstract

This research aims to review the influence of working capital on profitability in the property and real estate companies listed on the Indonesian Stock Exchange (IDX) by using secondary data. The sampling technique used purposive sampling. The number of samples in this study were 230 observations (46 companies with 5 years of research). The data analysis method used is ordinary least square (OLS) analysis assisted by SPSS 16. This study adds control variables to measure the resilience of variable relationships. The results of the study concluded that the working capital variable measured using cash management or cash conversion cycle (CCC) had a positive and insignificant effect on profitability using the control variable. Working capital variables measured using receivable management (receivable collection period) have a negative and significant effect on profitability using control variables. The working capital variable measured using inventory management (inventory conversion period) has no effect on profitability using the control variable. Working capital variables measured using debt management (account payable period) have a negative and significant effect on profitability using control variables.

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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Volume Title
Proceedings of the Sixth Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA 2020)
Series
Advances in Economics, Business and Management Research
Publication Date
17 June 2021
ISBN
978-94-6239-393-6
ISSN
2352-5428
DOI
10.2991/aebmr.k.210616.032How to use a DOI?
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/).

Cite this article

risenwbib
TY  - CONF
AU  - Gebrie Dwi Irhamna
AU  - Erni Masdupi
PY  - 2021
DA  - 2021/06/17
TI  - The Effect of Working Capital on the Profitability in Property and Real Estate Companies Listed on The Indonesian Stock Exchange (IDX)
BT  - Proceedings of the Sixth Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA 2020)
PB  - Atlantis Press
SP  - 206
EP  - 219
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210616.032
DO  - 10.2991/aebmr.k.210616.032
ID  - Irhamna2021
ER  -