Research Article
The Effect of Working Capital on Company Liquidity on Property and Real Estate Sub Sector Indexed on The Indonesia Stock Exchange
@INPROCEEDINGS{10.4108/eai.10-8-2022.2320803, author={Karnila Ali and Suwarto Suwarto}, title={The Effect of Working Capital on Company Liquidity on Property and Real Estate Sub Sector Indexed on The Indonesia Stock Exchange}, proceedings={Proceedings of the 3rd International Conference of Business, Accounting, and Economics, ICBAE 2022, 10-11 August 2022, Purwokerto, Central Java, Indonesia}, publisher={EAI}, proceedings_a={ICBAE}, year={2022}, month={8}, keywords={cashturnover account receivable turnover inventory turnover liquidity (current ratio)}, doi={10.4108/eai.10-8-2022.2320803} }- Karnila Ali
Suwarto Suwarto
Year: 2022
The Effect of Working Capital on Company Liquidity on Property and Real Estate Sub Sector Indexed on The Indonesia Stock Exchange
ICBAE
EAI
DOI: 10.4108/eai.10-8-2022.2320803
Abstract
This study is motivated by issues with property and real estate sub sector companies indexed on the Indonesia Stock Exchange (IDX), which experience a decrease in working capital and liquidity every year, specifically between 2018 and 2020. The goal of this study was to determine the impact of working capital on company liquidity through a case study of companies indexed on the Indonesia Stock Exchange (IDX) on the property and real estate sub-sector. This study is motivated by issues with experience a decrease in working capital and liquidity every year, specifically between 2018 and 2020. This study employs a quantitative approach. According to the results of tests conducted by researchers using descriptive statistical data analysis tools and testing requirements analysis using the normality test, testing the requirements for classical regression assumptions using the multicollinearity test, autocorrelation test, and heteroscedasticity test, as well as testing the hypothesis using multiple linear regression analysis, t test , F test, and R2 determination test show that there is an effect of receivables turnover on the company's liquidity (current ratio) in the property and real estate sub-sectors indexed on the IDX, but there is no effect of inventory turnover on the company's liquidity (current ratio) in this sector, and there is an effect of cash turnover, receivables turnover, and inventory turnover on the company's liquidity (current ratio)