Proceedings of The ICECRS
Vol 1 No 2 (2017): Science for Social Welfare and Justice
Articles

Risk Management, Working Capital Management and Financial Performance
Manajemen Risiko, Manajemen Modal Kerja dan Kinerja Keuangan


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  • Wisnu Panggah Setiyono,
  • Lia Ernawati
Wisnu Panggah Setiyono
Universitas Muhammadiyah Sidoarjo, Indonesia
Lia Ernawati
Universitas Muhammadiyah Sidoarjo, Indonesia
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DOI: https://doi.org/10.21070/picecrs.v1i2.1442
Published October 30, 2017
Keywords
  • internal audit,
  • current ratio,
  • working capital turnover and return on assets
How to Cite
Setiyono, W. P., & Ernawati, L. (2017). Risk Management, Working Capital Management and Financial Performance. Proceedings of The ICECRS, 1(2), picecrs.v1i2.1442. https://doi.org/10.21070/picecrs.v1i2.1442

Copyright (c) 2017 Wisnu Panggah Setiyono, Lia Ernawati

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This work is licensed under a Creative Commons Attribution 4.0 International License.

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Abstract

Research Purposes: Aim of this study was to know the impact of Risk Management and Working Capital Management to The Financial Performance of Companies Listed In Indonesia Stock Exchange (IDX).

Variables: This study employed Risk management proxied by Internal Audit. The proxies of working capital management, we used Current Ratio (CR) and Working Capital Turnover (WCTO). The Financial Performance we used Return On Assets (ROA) ratio as a proxy.

Research Method: We used multiple linear regression analysis to analyzed whether the Risk management and the working capital management had impact on The Financial Performance. We also performed classical assumption tests including; normality test, multicolinearity, autocorrelation and heteroskesdasticity.

Results: The results of this study indicate that simultaneously Internal Audit, CR and WCTO have a significant effect on financial performance. However, the partial effect had various results. The Internal audit and CR have no significant effect on financial performance whereas WCTO has a significant negative effect on financial performance.

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