Abstract

Working capital management and financial aspects are important in increasing value of a firm. By adjusting the leverage level, profitability/asset utilization, and growth of the company will effect the value of a firm. The study was conducted on 167 non-financial companies listed in Indonesia Stock Exchange in the period 2007 to 2016 using panel data and analyzed using linear model regression adding firm size as control. The results show working capital represented by net trade cycle have significant negative relationship to firm value. Meanwhile the financial aspects shows a significant positive relationship of leverage, and profitability to firm value, meanwhile sales growth doesn’t have significant effect to firm value.

Keywords Working Capital, Financial Aspects, Firm Value