Working Capital Requirements in Indonesia: Determining Factors, Adjustment Speed, and Financial Constraints

Working capital behavior has attracted the attention of researchers in relation to company development and financial environment. This study aims investigate determinants speed target adjustment working requirements examine whether constraints lead differences behavior. The sample consists public companies Indonesia for 2011-2018 period. results show that sales growth, leverage, size, operating cash flow, age, fixed assets have a significant effect on requirements. By applying GMM system from dynamic panel model, this also demonstrates level capital. Moreover, shows do not experience make adjustments target, but does happen constraints. optimal is highly dependent company's