Working Capital Turnover on Profitability Evidence on Manufacturing Firms in ASEAN | Jurnal Informatika Ekonomi Bisnis

Journal Content

Search

Search Scope

Browse

Information

Current Issue

Template
Similarity Checker

Member of

Statistics

Working Capital Turnover on Profitability Evidence on Manufacturing Firms in ASEAN

Andrew Christian Aseng Economic Education, Faculty of Education, Universitas Klabat Lanemey Brigitha Pandeirot Management, Faculty of Economics and Business, Universitas Klabat DOI: https://doi.org/10.37034/infeb.v5i4.756 Keywords: Working capital turnover, Liquidity, Profitability, Manufacturing firms, ASEAN Abstract This research aims to find out the effect of working capital turnover on profitability as measured by return on assets, return on equity, and net profit margin using the firm size control variable due to the inconsistency of results and the lack of related research. 5980 observations from manufacturing companies in five ASEAN countries that published financial reports on their respective stock exchanges in the 2012-2016 period were the sample for this research. This sample was then tested for multicollinearity and heteroscedasticity first and then the multiple regression method with a fixed effect model was used to find out the influence of the independent variable on the dependent variable. The research results found that working capital turnover did not affect the profitability of manufacturing companies in ASEAN. Thus, it is recommended that companies use other liquidity strategies that can be proven to influence profitability. It is recommended that further research be carried out using other variables or in different countries and research periods. Downloads Download data is not yet available. References Aldubhani, M. A. Q., Wang, J., Gong, T., & Maudhah, R. A. (2022). Impact of Working Capital Management On Profitability: Evidence From Listed Companies In Qatar. Journal of Money and Business, 2(1), 70–81. DOI: https://doi.org/10.1108/jmb-08-2021-0032 . Liana Susanto, V. J. (2020). Faktor-Faktor yang Mempengaruhi Profitabilitas Perusahaan Manufaktur yang Terdaftar di BEI. Jurnal Paradigma Akuntansi, 2(3), 1296. DOI: https://doi.org/10.24912/jpa.v2i3.9557 . Seth, H., Chadha, S., & Sharma, S. (2020). Redesigning The Efficiency Process Analysis for Working Capital Models: Evidences from The Determinants. Journal of Global Operations and Strategic Sourcing, 13(1), 38–55. DOI: https://doi.org/10.1108/JGOSS-04-2019-0029 . Karim, R., Mamun, Md. A. A., & Kamruzzaman, A. S. Md. (2023). Cash Conversion Cycle and Financial Performance: Evidence from Manufacturing Firms of Bangladesh. Asian Journal of Economics and Banking. DOI: https://doi.org/10.1108/ajeb-03-2022-0033 . Akoto, K. (2013). Working Capital Management and Profitability: Evidence from Ghanaian Listed Manufacturing Firms. Journal of Economics and International Finance, 5(9), 373–379. DOI: https://doi.org/10.5897/jeif2013.0539 . Mumtaz Hussain Shah, & Fayyaz Khan. (2021). Profitability and Working Capital Management Nexus: Evidence from Food & Personal Care Products Sector Firms Listed on Pakistan Stock Exchange. Journal of Business & Tourism, 4(1), 55–67. DOI: https://doi.org/10.34260/jbt.v4i1.90 . Elangkumaran, P., & Nimalathasan, B. (2021). The Impact of Working Capital Management on Corporate Profitability: Evidence from Listed Manufacturing Company of The Colombo Stock Exchange in Sri Lanka. SSRN Electronic Journal. DOI: https://doi.org/10.2139/ssrn.3733327 . Seth, H., Chadha, S., & Sharma, S. (2019). Redesigning the Efficiency Process Analysis for Working Capital Models. Journal of Global Operations and Strategic Sourcing, 13(1), 38–55. DOI: https://doi.org/10.1108/jgoss-04-2019-0029 . Ayalew Adimasu, N. (2019). Dividend Policy and Firm’s Profitability: Evidence from Ethiopian Private Insurance Companies. Journal of Finance and Accounting, 7(4), 116. DOI: https://doi.org/10.11648/j.jfa.20190704.12 . O’Connell, M. (2023). Bank-Specific, Industry-Specific and Macroeconomic Determinants of Bank Profitability: Evidence from the UK. Studies in Economics and Finance, 40(1), 155–174. DOI: https://doi.org/10.1108/SEF-10-2021-0413 . Saif-Alyousfi, A. Y. H. (2022). Determinants of Bank Profitability: Evidence from 47 Asian Countries. Journal of Economic Studies, 49(1), 44–60. DOI: https://doi.org/10.1108/JES-05-2020-0215 . Sudiyatno, B., Puspitasari, E., Suwarti, T., & Asyif, M. M. (2020). Determinants of Firm Value and Profitability: Evidence from Indonesia. Journal of Asian Finance, Economics and Business, 7(11), 769–778. DOI: https://doi.org/10.13106/jafeb.2020.vol7.no11.769 . Ngo, V. T., Tram, T. X. H., & Vu, B. T. (2020). The Impact of Debt on Corporate Profitability: Evidence from Vietnam. Journal of Asian Finance, Economics and Business, 7(11), 835–842. DOI: https://doi.org/10.13106/jafeb.2020.vol7.no11.835 . Balios, D., & Zaroulea, T. (2021). Corporate Governance, Internal Audit and Profitability: Evidence From P.I.G.S. Countries. IBIMA Business Review. IBIMA Publishing. DOI: https://doi.org/10.5171/2020.668702 . Abidillah, A. F., Kasanah, R., & Rusgianto, S. (2022). Macroeconomic’s Effect on Islamic and Conventional Banking Profitability: Evidence From Indonesian Dual-Banking System. Jurnal Ekonomi & Keuangan Islam, 1–16. DOI: https://doi.org/10.20885/jeki.vol8.iss1.art1 . Kumar, V., Thrikawala, S., & Acharya, S. (2022). Financial Inclusion and Bank Profitability: Evidence from A Developed Market. Global Finance Journal, 53. DOI: https://doi.org/10.1016/j.gfj.2021.100609 . Fernández-López, S., Rodeiro-Pazos, D., & Rey-Ares, L. (2020). Effects of Working Capital Management on Firms’ Profitability: Evidence from Cheese-Producing Companies. Agribusiness, 36(4), 770–791. DOI: https://doi.org/10.1002/agr.21666 . Sedera, R. M. H., Risfandy, T., & Futri, I. N. (2022). Financial Inclusion and Bank Profitability: Evidence from Indonesia. Journal of Accounting and Investment, 23(3), 398–412. DOI: https://doi.org/10.18196/jai.v23i3.14721 . Pham, N. H., Hoang, T. M., & Pham, N. T. H. (2022). The Impact of Capital Structure on Bank Profitability: Evidence from Vietnam. Cogent Business and Management, 9(1). DOI: https://doi.org/10.1080/23311975.2022.2096263 . Saleh, I., & Abu Afifa, M. (2020). The Effect Of Credit Risk, Liquidity Risk and Bank Capital On Bank Profitability: Evidence from an Emerging Market. Cogent Economics and Finance, 8(1). DOI: https://doi.org/10.1080/23322039.2020.1814509 .	Download Published 2023-12-31 Issue Vol. 5, No. 4 (December 2023) Section Articles How to Cite Aseng, A. C., & Pandeirot, L. B. (2023). Working Capital Turnover on Profitability Evidence on Manufacturing Firms in ASEAN. Jurnal Informatika Ekonomi Bisnis, 5(4), 1393-1397. https://doi.org/10.37034/infeb.v5i4.756 ACM ACS APA ABNT Chicago Harvard IEEE MLA Turabian Vancouver Download Citation Endnote/Zotero/Mendeley (RIS) BibTeX This work is licensed under a Creative Commons Attribution 4.0 International License.

Indexing and Abstractions:

Published:

This work is licensed under a Creative Commons Attribution 4.0 International Public License (CC BY 4.0).

Web Analytics Made Easy -
StatCounter