ABSTRACT
This study aimed at analyzing the impact of working capital management on firm performance and how financial constraints determine this relationship. For this purposes, the annual data of manufacturing firm listed in Indonesian stock exchange during 2011-2015 periods were employed. The results from regression analysis indicated an inverted U-shape relationship between working capital and firm performance. Fur-thermore, it was also found that financial constraints weakened the relationship between working capital and firms’ value. There were robust results for the various measurement of financial constraint.
