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Analyzing the influence of working capital management (WCM) on the liquidity of technology businesses listed on the Indonesia Stock Exchange (IDX) is the objective of this research. This examines how important variables including Cash Conversion Cycle (CCC), Current Ratio, and Quick Ratio affect business liquidity. Using purposive sampling, 21 technology companies were selected from a total of 32 companies in the population. This study takes a quantitative approach, addressing the potential endogeneity issues in dynamic panel data analysis with the two-step Generalized Method of Moments. (GMM). The results show that CCC significantly disrupts liquidity, indicating that a longer CCC reduces the company's capacity to meet short-term commitments. On the other hand, liquidity is positively influenced by the current ratio and quick ratio, which indicates that higher values in these ratios enhance the company's ability to pay its current liabilities.

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The Effect of Working Capital Management on Liquidity in Technology Sector Companies Listed on the Indonesia Stock Exchange (IDX)

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  • 发表日期：

    2025年

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  • Neni Marlina Br. Purba,
  • Porkas Sojuangon Lubis,
  • Heri Enjang Syahputra,
  • Iskandar Muda,
  • Noor Marini Haji Abdullah

摘要

Analyzing the influence of working capital management (WCM) on the liquidity of technology businesses listed on the Indonesia Stock Exchange (IDX) is the objective of this research. This examines how important variables including Cash Conversion Cycle (CCC), Current Ratio, and Quick Ratio affect business liquidity. Using purposive sampling, 21 technology companies were selected from a total of 32 companies in the population. This study takes a quantitative approach, addressing the potential endogeneity issues in dynamic panel data analysis with the two-step Generalized Method of Moments. (GMM). The results show that CCC significantly disrupts liquidity, indicating that a longer CCC reduces the company's capacity to meet short-term commitments. On the other hand, liquidity is positively influenced by the current ratio and quick ratio, which indicates that higher values in these ratios enhance the company's ability to pay its current liabilities.