Working Capital, Financial Constraints, and Firm Value: Evidence of Indonesia Manufacturing Firm

Abstract

This study examines the effect of working capital management and financial constraints (which proxied by size, cash flow, leverage, and Z-score) to the firm value in manufacturing listed on the Indonesia Stock Exchange during the period of 2012-2016. The research uses multiple regression data panel with fixed effect model of 110 firms. Data processing is statistical software Eviews 9. The results show that working capital and financial constraints affect the firm value.