Does working capital management strategy affect profitability? Evidence of Indonesian manufacturing companies during the COVID-19 pandemic

• Autores: Isnurhadi Isnurhadi, Sulastri Sulastri, Abdul Bashir, Muizzuddin Muizzuddin
• Localización: Contaduría y administración, ISSN 0186-1042, ISSN-e 2448-8410, Vol. 71, Nº. 3, 2026, págs. 1-25
• Idioma: inglés
• Títulos paralelos:
  • ¿Afecta la estrategia de gestión del capital circulante a la rentabilidad? Evidencia de empresas manufactureras indonesias durante la pandemia de COVID-19
• Enlaces
  • Texto completo (pdf)
• Resumen
  • English

    This study investigates whether various components of working capital policy impact profitability.

    Furthermore, this study considers whether the COVID-19 outbreak can intervene in this relationship.

    Using a sample of 126 listed manufacturing companies in Indonesia from 2017 to 2020, we employ a comparison of two general equations (before and during the COVID-19 outbreak) of a linear model involving several working capital policies on profitability. The study shows an anomaly that occurred during COVID-19. Companies tended to carry out aggressive working capital behavior during the COVID-19 pandemic compared to before COVID-19. The reason behind this is that the company gets incentives to defer debt payments or get additional debt facilities which are used to increase receivables and inventory. This study also shows that there is a negative influence of the financial flow cycle on profitability, both before and during the COVID-19 period. Empirical findings indicating inconsistencies in working capital behavior prove that the practice of working capital implemented by manufacturing companies in Indonesia is currently not offended to be more.

  • English

    Este estudio investiga si varios componentes de la política de capital de trabajo impactan la rentabilidad.

    Además, este estudio considera si el brote de COVID-19 puede intervenir en esta relación. Utilizando una muestra de 126 empresas manufactureras que cotizan en bolsa en Indonesia de 2017 a 2020, empleamos una comparación de dos ecuaciones generales (antes y durante el brote de COVID-19) de un modelo lineal que involucra varias políticas de capital de trabajo sobre la rentabilidad. El estudio muestra una anomalía que ocurrió durante el COVID-19. Las empresas tendieron a llevar a cabo un comportamiento agresivo en materia de capital de trabajo durante la pandemia de COVID-19 en comparación con antes de la pandemia. La razón detrás de esto es que la empresa recibe incentivos para aplazar los pagos de la deuda u obtener líneas de crédito adicionales que se utilizan para aumentar las cuentas por cobrar y el inventario.

    Este estudio también muestra que existe una influencia negativa del ciclo de los flujos financieros sobre la rentabilidad, tanto antes como durante el período COVID-19. Los hallazgos empíricos que indican inconsistencias en el comportamiento del capital de trabajo demuestran que la práctica de capital de trabajo implementada por las empresas manufactureras en Indonesia actualmente no se ofende por ser mayor

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