IDEAS home Printed from https://ideas.repec.org/a/epw/ejbmr0/v7y2022i6id51711.html

The Role of Liquidity in Determining Firm Performance: An Empirical Study on Manufacturing Companies in Indonesia

Author

Listed:
  • Bambang Sudiyatno

    (University of Stikubank, Indonesia.)

  • Titiek Suwarti

    (University of Stikubank, Indonesia.)

Abstract

This study aims to examine the role of liquidity in influencing firm performance, especially for manufacturing companies operating in Indonesia. The research variables include firm performance as the dependent variable, capital structure and firm size as independent variables, operating assets as a control variable, and liquidity as a moderating variable. The study was conducted on 123 manufacturing companies in Indonesia for the 2019-2021 period. The data collection method used purposive sampling, while the data analysis used multiple regression techniques. The results showed that liquidity had a negative effect, and operating assets and firm size had a positive effect on firm performance. While the capital structure has a negative effect on firm performance at a significance of less than 10%. Liquidity plays an important role as a moderating variable on firm size and capital structure in influencing firm performance.

Suggested Citation

  • Bambang Sudiyatno & Titiek Suwarti, 2022. "The Role of Liquidity in Determining Firm Performance: An Empirical Study on Manufacturing Companies in Indonesia," European Journal of Business and Management Research, European Open Science, vol. 7(6), pages 183-188, October.
    • Handle: RePEc:epw:ejbmr0:v:7:y:2022:i:6:id:51711
    DOI: 10.24018/ejbmr.2022.7.6.1711
    as

    Download full text from publisher

    File URL: https://eu-opensci.org/index.php/ejbmr/article/view/51711
    File Function: Abstract page
    Download Restriction: no
    File URL: https://eu-opensci.org/index.php/ejbmr/article/download/51711/7603
    File Function: Full text
    Download Restriction: no
    File URL: https://libkey.io/10.24018/ejbmr.2022.7.6.1711?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:epw:ejbmr0:v:7:y:2022:i:6:id:51711. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Support Team (email available below). General contact details of provider: https://eu-opensci.org/index.php/ejbmr .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.