Working Capital Management and Performance of Telecommunication Companies in ASEAN-4: The Role of Financial Development
- Autores: Taufik Urachmansyah, Noer Azam Achsani, Trias Andati
- Localización: International Journal of Professional Business Review: Int. J. Prof.Bus. Rev., ISSN 2525-3654, ISSN-e 2525-3654, Vol. 8, Nº. 8, 2023 (Ejemplar dedicado a: Continuous publication; e02907)
- Idioma: inglés
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Resumen
Purpose: The research is designed to comprehensively analyze the influence of internal factors (working capital) and external (financial development) on the probability of telecommunication companies in ASEAN-4.
Theoretical framework: Managing Working capital is concerns about efficiency and proportion of investment in current assets and short-term financing to see the level of profitability and risk of the company that is a trade-off.
Design/Methodology/Approach: This study uses panel data regression analysis using secondary data from annual financial statements of telecommunications companies in ASEAN-4 from 2012-2021.
Findings: Net Trade Cycle (NTC) positively affects long-term profitability (Tobin's Q), Average Payable Period to Sales (APPS) and Working Capital Financial Policy (WCFP) affect short-term profitability (ROA) and long-term profitability (Tobin's Q). Financial Development (FD) moderates the relationship of managing working capital (management and policy) to short-term performance (ROA) and long-term performance (Tobin'sQ).
Research, practical & social implications: Management and investors of telecommunication companies in ASEAN-4 need to consider internal factors such as working capital management and external factors such as financial development to improve company performance.
Originality/Value: This study is the first to analyze the influence of Financial Development in managing working capital for telecommunication companies in ASEAN-4.
