Working Capital Management and Capital Structure on Profitability: Evidence from Property and Real Estate Companies in Indonesia

DOI

10.2991/aebmr.k.220702.066How to use a DOI?

Keywords

working capital; inventory; receivables; debt; capital structure; profitability; property and real estate; Indonesia stock exchange

Abstract

The purpose of this study is to provide literature on working capital and capital structure by analysing its relationship to profitability. This study used a sample of 26 real estate companies and real estate companies on the Indonesia Stock Exchange from 2015 to 2019. In this study, we used the panel’s data regression technique. The results of this study show that there is a beneficial negative relationship between working capital and its components. The capital structure adversely affects profitability. The results also showed that the relationship between working capital and its components and capital structure and profitability depends on other factors such as economic growth, inflation, and company size.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Rita Novrianti
AU  - Dina Patrisia
PY  - 2022
DA  - 2022/07/21
TI  - Working Capital Management and Capital Structure on Profitability: Evidence from Property and Real Estate Companies in Indonesia
BT  - Proceedings of the Eighth Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-8 2021)
PB  - Atlantis Press
SP  - 436
EP  - 440
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220702.066
DO  - 10.2991/aebmr.k.220702.066
ID  - Novrianti2022
ER  -