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Analysis of Working Capital Management, Institutional Ownership, and Asset Efficiency on Profitability: Role of Capital Structure on the Infrastructure Sector in the Indonesian Stock Exchange

Year: 2024

Type: article

Abstract: This research examines the profitability of the sub-construction infrastructure sector within the building industry, as listed on the Indonesia Stock Exchange during the 2018-2022 period. The study aims to assess both the direct and indirect effects of working capital management, institutional ownership, and asset efficiency on profitability, with capital structure serving as an intervening variable. Utilizing panel data regression analysis, the research focused on a sample of seventeen companies from the building construction sub-sector listed on the Indonesia Stock Exchange over the specified period. The findings indicate that asset efficiency significantly influences profitability, whereas working capital management and institutional ownership do not. Additionally, capital structure is found to have no effect on profitability. Indirectly, neither working capital management nor institutional ownership, nor asset efficiency, when mediated by capital structure, show any impact on profitability.

Source: Quantitative Economics and Management Studies

DOI: 10.35877/454ri.qems2949

Authors: Galih Bogo Samudro, Sri Mulyantini, Jubaedah Jubaedah

Institution: Universitas Pembangunan Nasional Veteran Jakarta

Language: English

Topic: Working Capital and Financial Performance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W4406066787

FWCI:

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