The Effect of Working Capital Policy on Financial Performance of LQ45 Companies on the IDX 2017-2019

ABSTRACT : The purpose of this study was to determine the effect of asset structure, working capitalturnover, liquidity and working capital funding on financial performance. This research was conducted at LQ45index companies listed on the Indonesia Stock Exchange for the period 2017-2019. The number of samples usedwas 31 with the sampling technique used was non probability sampling with purposive sampling method. Theanalysis technique used is multiple linear regression. Based on the analysis, it is found that the asset structurehas a positive effect on financial performance. Working capital turnover has a positive effect on financialperformance. Liquidity has no significant effect on financial performance. Working capital funding has nosignificant effect on financial performance as measured by Return On Assets (ROA).

Keywords : financial performance, asset structure, working capital turnover, liquidity, working capital funding