SUSTAINABLE GROWTH THROUGH WORKING CAPITAL MANAGEMENT
Recently, the business environment has become increasingly dynamic and fully uncertain. In such situation, it is important for companies to have sustainable growth. This article aims to discuss short-term cash flow management through working capital to support sustainable growth. The research was conducted using financial report data from non-financial companies listed in the LQ45 index on the Indonesian capital market in 2023. Samples were taken using historical data for 2019-2022. As we know that those years taken as of considering the uncertain conditions of the Covid-19 pandemic. The analysis used panel data regression analysis because it joined times series and cross-section data. The research results found the influence of aggressive working capital management for investment on sustainable growth. However, aggressive/conservative working capital for financing has no effect on sustainable growth. The company's strategic environment influences aggressive/conservative working capital management. In conditions of growth opportunities, companies tend to use aggressive working capital management for investment. Financial distress also has a positive effect on aggressive working capital policies for financing through the use of short-term debt. The results of this study provide implications for working capital management as a mediator of growth opportunities and financial distress for sustainable growth.
Sustainable Growth, Working Capital Management, Aggressive-Conservative, Growth Opportunities, Financial Distress.