DETERMINANTS OF WORKING CAPITAL MANAGEMENT (PROPERTY & REAL ESTATE SECTOR IN INDONESIA 2006 - 2015)

Abstract

The purpose of this study is to find the relationship of financial performance (liquidity, leverage, profitability), capital expenditure, sales growth and firm size toward working capital management in Property and Real Estate sector in Indonesia period 2006 – 2015. The type of data that used is secondary data from annual reports of each company that were derived from Indonesia Stock Exchange (IDX) website. Through purposive sampling, this research got 70 data which fulfill the criteria. This research is quantitative research and used some analysis methods, such as descriptive analysis and multiple regression analysis. Based on the result, it is concluded that there are 4 independent variables such as Liquidity, Leverage, Profitability, and Firm size that have significant relationship toward working capital management. On the other hand, Capital expenditure and Sales growth have no significant relationship to working capital management. Simultaneously, those 6 independent variables contribute 53.97% influences to dependent variable. The remaining of 46.03% is influenced by other factors outside this research.