| dc.description.abstract | Every organization, regardless of its size and nature of business, requires a certain amount of
working capital. Though it may seem simple, managing working capital is crucial for a company's
sustainability. If not managed properly, poor working capital can lead to deteriorating liquidity and
bankruptcy. Working Capital Management (WCM) involves making decisions regarding the amount
and proportion of current assets and financing structure over the assets. Managers are required to
have the ability to plan and control capital to prevent shortages or excess funds. However, the
implementation of policies and decision making carried out by managers is not always based on
reasons to improve WCM efficiency alone. Managers have the potential for opportunistic
management motivation. One of them is through the practice of Earnings Management. There are
many factors that influence working capital management. However, the factors used in this study are
earnings management, return on asset, operating cash flow, leverage, firm growth, firm size, and
working capital accruals. Meanwhile, WCM is reflected by the cash conversion cycle (CCC). By
taking samples from listed companies in Indonesia, Malaysia, Singapore, the Philippines and
Thailand for the period 2003-2022, it was found that there was a significant positive influence from
earnings management and working capital accruals on WCM. Profitability, operating cash flow,
leverage, and firm growth have a significant negative effect on WCM. Meanwhile, firm size shows
an insignificant influence. | en_US |
