FIRM SIZE, FIRM PERFORMANCE, SALES GROWTH DAN BOARD DUALITY DALAM PENGELOLAAN CASH CONVERSION CYCLE

Abstract

v>The cash conversion cycle is identified as a company's cash flow, which refers tothe period between cash outflows and cash inflows. Companies need to managethe cash conversion cycle to measure the time it takes to convert investmentsinto cash. Companies with smaller cash conversion cycles or shorter days areconsidered better. It can show how fast and efficient a company’s buying, sellingand collecting supplies activities. Accelerating the cash conversion cycle withoutdisturbing the running of the company will increase profits, because the longerthe cash conversion cycle, the greater costs required. The research objective isto determine the effect of firm size, firm performance, sales growth, and boardduality on the cash conversion cycle. The population in this study is the companyIDX30 listed on Indonesia Stock Exchange for 2015-2019 period. The sampleis conducted using purposive sampling methods and 115 companies are met withthe sample criteria for analysis. The data analyzed using multiple linearregression analysis. The results of this study show that firm size,firm performance, and board duality have effect on the cash conversion cycle.Meanwhile, sales growth has no effect on the cash conversion cycle of publiccompanies at IDX30.Keywords: cash conversion cycle, firm size, firm performance, sales growth,board duality