Title: Analysis of The Effects of Trade Receivable Policies, Funding Policies and Investment Policies on Company Profitability
Abstract: Abstract. The goal of any company is to maximize profitability. Profitability is use tomeasure how far the effectiveness of overall management in creating a profit for thecompany. To achieve that objective then needed a policy that made of company byeffectively and efficiently. Policy which needed in company that serve the sale on credit isthe policy of account receivable. Receivable management is very important for anycompany's daily operation. With presence of appropriate receivable management then thecompany can minimize the uncollectible account receivable. Funding policy is verydecisive the company's capability in doing that operate activity and effect toward risk of thecompany itself. Furthermore investment decision is often reputed as the most importantdecision making of corporate financial manager to achieve the company's aim one of whichis to maximize the profitability of company. So expect the composition of these policiescan maximize the company's profitability.This research is purpose to knowing the effect of account receivable policy, funding policyand investment policy towards profitability of company in automotive sector listed onBursa Efek Indonesia year period 2005-2014. The sample of research consist of 3automotive companies listed in Bursa Efek Indonesia and selected by purposive sampling.The research data is secondary data obtained from Indonesian Capital Market ElectronicLibrary (ICAMEL) 2005 to 2014. The data analysis technique that used is path analysis todiscern the effect of account receivable policy, funding policy and investment policytoward company's profitability.The result of this research prove partially that account receivable policy has no significanteffect on profitability, funding policy negative and significant effect on profitability,investment policy positive and significant effect on profitability of the company. Whereassimultaneously account receivable policy and funding policy have significant effect on theprofitability of company, account receivable policy and investment policy have nosignificant effect on profitability of company, funding policy and investment policy havesignificant effect on profitability of company, and account receivable policy, fundingpolicy and investment policy have significant on the profitability of company.
Keywords : Account Receivable Policy, Funding Policy, Investment Policy, CompanyProfitability
Publication Year: 2018
Publication Date: 2018-01-01
Language: en
Type: article
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Cited By Count: 4
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