%0 Generic
%A LIA HERMANTO , 1211011169
%C  UNIVERSITY OF LAMPUNG
%D 2017
%F eprints:25448
%I FACULTY OF ECONOMICS AND BUSINESS
%T THE EFFECTS OF WORKING CAPITAL MANAGEMENT  ON PROFITABILITY IN SMALL MANUFACTURING  COMPANIES LISTED ON INDONESIA  STOCK EXCHANGE
%U http://digilib.unila.ac.id/25448/
%X The object of the research presented in this paper is to provide empirical evidence  on the effects of working capital management on profitability in small  manufacturing companies listed in Indonesia Stock Exchange. Panel regressions  (fixed effects) and instrumental variables were used to model a sample of 53 small  manufacturing companies listed in Indonesia Stock Exchange, covering the time  period 2012 – 2015. The empirical result showed the number of days account  receivable and the number of days inventories had a negative effect to the  profitability (ROA), while the rest variables have no significant level. The number  of days accounts receivable, the number of days inventories, current asset ratio,  current liabilities ratio, the sales growth of the company, and the leverage had  effect to the profitability (ROA) simultaneously with or without control variables.  Moreover, managers can improve the firms’ profitability by shortening receivable  conversion period and inventory conversion period.  Keywords: Profitability, Working Capital Management, Small Companies.