Title: EFFECT OF WORKING CAPITAL AND BUSINESS CYCLE WITH DOL AS A MODERATION VARIABLE ON PROFITABILITY
Author: DIAN RATNASARI YAHYA
Item Type: Thesis (Thesis)
Affiliations: Master of Management Science Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
This research aims to test and analyze working capital management on profitability, test and analyze the indirect influence of the business cycle on profitability through working capital management, test and analyze the degree of operating leverage (DOL) in moderating the influence of working capital management on profitability. The population used in this research is 150 manufacturing companies listed on the Indonesia Stock Exchange (BEI) from 2004 to 2014. The sampling method used purposive sampling and the samples taken based on these criteria were 83 companies from 2004 to 2014 with simple linear regression analysis techniques in model 1 and multiple linear regression in models 2 and 3. The results of the study showed that working capital management had a negative effect significant to profitability. The business cycle through the cash conversion cycle has a negative indirect effect on profitability. Degree of operating leverage (DOL) moderates the effect of working capital management on profitability. Keywords: Working Capital Management, Business Cycle, Degree of Operating Leverage and Profitability.
Keywords: Working Capital Management, Business Cycle, Degree of Operating Leverage and Profitability
