ABSTRACT
The purpose of this study is to examine the effect of the cash conversion cycle, operating cash flow, firm size, profitability, leverage, growth opportunities and the real GDP growth rate on working capital requirements. This research uses 85 manufacturing companies that were listed on the Indonesian Stock Exchange from 2010 to 2014. Multiple linear regression and panel data are used as the analysis tools. The study finds that the cash conversion cycle and profitability have a positive effect on working capital, whereas leverage has a negative effect on working capital. However, operating cash flow, firm size, growth opportunities and the real GDP growth rate have no significant effect on working capital.
