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Central European Management Journal

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Year 2019 
Volume 27 
Issue 3

Working Capital Management Policy: Female Top Managers and Firm Profitabilit

Pambayun Kinasih Yekti Nastit
Universitas Kristen Satya Wacana

Apriani Dorkas Rambu Atahau
Universitas Kristen Satya Wacana

Supramono Supramono
Universitas Kristen Satya Wacana

2019 27 (3) Central European Management Journal

DOI 10.7206/cemj.2658-0845.5


Purpose: This study aims to investigate female top managers’ choice of working capital management
policies and its effect on firm profitability. The theoretical arguments about the effects of working
capital management policies on firm profitability and empirical evidence are often inconsistent.
Additionally, it is likely that the policy choice is closely related to the gender of top managers.

Methodology: Our research sample was all 136 manufacturing firms listed in Indonesian Stock
Exchange during the 2013–2017 period. Following the hypothesis formulation, this study employed
four estimation models tested using panel data regression.

Findings: Female CFOs tend to choose more conservative working capital investment policies.
Moreover, conservative investment policies have a positive effect on firm profitability and mediate
the impact of top female managers on firm profitability.

Originality: Previous literature tends to overlook the role of top female managers in affecting
working capital management policies and the effect of these policies on firm profitability. In this
respect, this study provides insights on the role of the gender of top managers as a factor that likely
explains the choice of working capital management policies in manufacturing firms which, in turn,
affect firm profitability.


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APA style

Kinasih Yekti Nastit, Pambayun & Dorkas Rambu Atahau, Apriani & Supramono, Supramono (2019). Kinasih Yekti Nastit, P. , Dorkas Rambu Atahau, A. , & Supramono, S. . (2019). Working Capital Management Policy: Female Top Managers and Firm Profitabilit. Central European Management Journal, 27(3), 107-127. https://doi.org/10.7206/cemj.2658-0845.5 (Original work published 2019)

MLA style

Kinasih Yekti Nastit, Pambayun and Dorkas Rambu Atahau, Apriani and Supramono, Supramono. Kinasih Yekti Nastit, P. , et al. “Working Capital Management Policy: Female Top Managers And Firm Profitabilit”. 2019. Central European Management Journal, vol. 27, no. 3, 2019, pp. 107-127.

Chicago style

Kinasih Yekti Nastit, Pambayun and Dorkas Rambu Atahau, Apriani and Supramono, Supramono. Kinasih Yekti Nastit, Pambayun , Apriani Dorkas Rambu Atahau, and Supramono Supramono. “Working Capital Management Policy: Female Top Managers And Firm Profitabilit”. Central European Management Journal, Central European Management Journal, 27, no. 3 (2019): 107-127. doi:10.7206/cemj.2658-0845.5.