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The Impact of Working Capital Management on Profitability: The Mediating Role of Liquidity in Pakistan’s Textile Sector

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This study investigates the impact of working capital management (WCM) on the profitability of textile firms listed on the Pakistan Stock Exchange (PSX), with a specific focus on the mediating role of firm liquidity. Pakistan’s textile sector, which contributes approximately 8.5% to GDP, accounts for 46% of total manufacturing output, and generates over 60% of national export earnings, operates under persistent macroeconomic pressures including energy shortages, currency depreciation, volatile cotton prices, and constrained access to short-term financing. The study employs a panel dataset comprising eight PSX-listed textile firms over the period FY2020-FY2024, yielding 40 firm-year observations; the dynamic GMM profitability model uses 30 observations because CCC and ITO data were unavailable for selected firm-years. The primary measures of working capital efficiency are the Cash Conversion Cycle (CCC) and Inventory Turnover (ITO), while firm profitability is measured by Return on Assets (ROA) and firm liquidity is captured through the Current Ratio. The empirical results show a positive and significant relationship between CCC and ROA (β = 0.068, p = 0.028), a strong positive relationship between ITO and ROA (β = 1.847, p = 0.015), and a dominant positive effect of liquidity on profitability (β = 28.640, p = 0.002). Firm liquidity partially mediates the relationship between working capital management and profitability, and panel cointegration tests confirm a stable long-run equilibrium among the study variables.

The Effect of Effective Tax Rate, Moral Hazard, and Firm-Specific Determinants on Capital Structure

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This research aims to examine the effectiveness of Effective Tax Rate, Firm Size, Profitability, Non-Debt Tax Shield, and Moral Hazard toward Capital Structure in oil, gas, and coal subsector firms listed on the Indonesian Stock Exchange during the period 2016-2024. The study employs a quantitative research design using panel data regression analysis. The Fixed Effect Model is selected based on panel data model selection tests and analyzed using EViews 12. The empirical findings reveal that only Profitability has a statistically significant negative effect on Capital Structure. Meanwhile, Effective Tax Rate, Firm Size, Non-Debt Tax Shields, and Moral Hazard do not exhibit statistically significant effects. These results suggest that internal financing capacity plays a more dominant role than tax incentives, firm scale, alternative tax shields, or agency-related considerations in determining capital structure decisions within the observed subsector. These research findings suggest that the effect of internal financing capacity dominates the effect of tax and agency-related considerations in determining Capital Structure within the Indonesian energy subsector. This study is limited by its sector-specific focus and restricted observation period.

Which Financial Signals Drive Stock Returns the Most? Evidence from Indonesia’s Miscellaneous Industry Sector 2022–2024

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This study examines the effects of profitability, liquidity, company size, price-to-book value, and leverage on stock returns of companies in the Miscellaneous Industry Sector listed on the Indonesia Stock Exchange during the 2022–2024 period, grounded in signalling theory. The study employed a quantitative approach using purposive sampling, selecting 40 companies with a total of 120 observations across three years. Data were analysed using multiple linear regression, preceded by classical assumption testing including normality, multicollinearity, heteroscedasticity, and autocorrelation tests.

The results show that all independent variables simultaneously exert a significant effect on stock returns (F = 12.267; p < 0.001), with the model explaining 32.1% of the variation in stock returns. Partially, profitability measured by Return on Assets has a positive and significant effect on stock returns, while price-to-book value emerges as the most dominant predictor with a standardised coefficient of 0.605 and a p-value below 0.001. In contrast, liquidity measured by the current ratio, company size measured by total assets, and leverage measured by the debt-to-equity ratio show no significant effect on stock returns.

These findings suggest that investors in this sector respond more strongly to signals of profitability and market valuation than to liquidity, asset scale, or debt structure. This study contributes to the literature on financial signal-based investment decision-making in developing country capital markets and reinforces the practical relevance of signalling theory in emerging market contexts. Company management should prioritise improving profitability and managing stock market value to attract investor interest and sustain stock return growth.

Financial Literacy and the Profitability of Entrepreneurial Projects

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Financial matters are becoming increasingly complex, placing financial education at the forefront of governments’ concerns. It is now widely accepted that people with a sound financial education make informed choices regarding financial management. In an entrepreneurial context characterised by a relentless pursuit of performance, this article aims to assess the impact of financial education on the profitability of entrepreneurial projects. To carry out this work, we adopted a quantitative methodological approach; the non-probabilistic sampling method based on reasoned selection enabled us to set the sample at 128 project managers. We conducted a survey and collected data which were analysed using frequency statistics and multiple regression tests. Prior to this, we applied PCA to extract the items relevant for constructing the factor axes, and Cronbach’s alpha was used to ensure the internal consistency of these items. The results confirm that entrepreneurs’ cognitive abilities and financial literacy significantly improve the economic and financial profitability of entrepreneurial projects. This finding suggests the need to develop training programs dedicated to the financial education of young entrepreneurs and to facilitate access to financial services and technologies.

The Effect of Environmental Performance, Liquidity, and Leverage on Profitability with Firm Size as a Moderating Variable: Evidence from Mining Companies Listed on the IDX and SET (2018–2024)

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This study aims to examine the impact of environmental performance, liquidity, and leverage on profitability, with firm size acting as a moderating variable, among mining sector companies listed on the Indonesia Stock Exchange (IDX) and the Stock Exchange of Thailand (SET). Profitability serves as a critical indicator for assessing overall corporate performance.

A quantitative approach was employed, utilizing panel data regression analysis. Data processing and analysis were conducted using EViews version 13. The research sample comprised 28 mining companies listed on the IDX and 25 mining companies listed on the SET, covering the observation period from 2018 to 2024.

The empirical results reveal that environmental performance has a positive and significant effect on profitability for mining companies listed on the IDX; however, it does not significantly affect the profitability of those listed on the SET. Liquidity demonstrates a positive and significant impact on profitability across mining companies in both the IDX and the SET. Conversely, leverage exerts a negative and significant influence on profitability for companies in both markets. Furthermore, firm size fails to moderate the relationship between environmental performance and profitability in both the IDX and SET contexts. Firm size significantly moderates the effect of liquidity on profitability for companies listed on the IDX, but this moderating effect is absent for those listed on the SET. Finally, firm size is unable to moderate the impact of leverage on profitability for mining companies listed on either exchange.

Do Financial Policies and Firm Characteristics Affect Firm Value? Evidence from Indonesian Mining Firms Listed on the Indonesia Stock Exchange (2020–2024)

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Firm value reflects market assessments of a company’s financial performance and future prospects, particularly in capital-intensive and volatile industries such as mining. This study examines the effects of dividend policy, investment decisions, leverage, profitability, and firm size on firm value in mining companies listed on the Indonesia Stock Exchange during the 2020– 2024 period. Using a quantitative approach, this study employs panel data regression analysis on financial statement data obtained through purposive sampling. Firm value is measured using Tobin’s Q, while the independent variables are proxied by standard financial indicators. The results show that dividend policy, investment decisions, leverage, profitability, and firm size do not have a statistically significant effect on firm value. These findings indicate that investors in the mining sector tend to prioritize growth prospects, overall firm performance, and risk considerations rather than short-term financial policies or firm-specific characteristics. In addition, high dividend payouts may limit internal funds for investment, while investment allocation, leverage utilization, and profitability improvements may not immediately translate into higher market valuation due to perceived risks, liquidity constraints, and industry uncertainty. This study suggests that market valuation in the mining sector is influenced more by broader expectations and external conditions than by individual financial indicators, providing important implications for managers and investors in understanding firm value dynamics.

The Effect of Growth Opportunity and Credit Risk on Firm Value and Profitability as Mediating Variables in Digital Banking

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The digital transformation phenomenon in the Indonesian banking industry is growing rapidly, marked by the emergence of digital banks offering fully technology-based services. This change is driving increased competition and creating new dynamics in assessing company value, particularly regarding growth opportunities and credit risk quality. This study aims to analyze the effect of growth opportunity and credit risk on company value, with profitability as a mediating variable. The study uses a quantitative approach with growth opportunity and credit risk as independent variables, profitability as a mediating variable, and company value as the dependent variable. The research sample consisted of six digital banks selected through purposive sampling with a total of 30 observations during the 2020–2024 period. Data were obtained from the companies’ annual financial reports and official publications of the Indonesia Stock Exchange. Then, they were processed using panel regression with the EGLS method and the Sobel test using the Eviews 12 application. The results show that growth opportunity has a positive and significant effect on company value, while credit risk has a negative and significant effect. Credit risk also has a negative and significant effect on profitability, while growth opportunity has no significant effect on profitability. Furthermore, profitability has a positive and significant effect on company value, but does not mediate the relationship between growth opportunity and credit risk on company value. These findings suggest that the firm value of digital banks is more influenced by growth prospects and asset quality than the mediating pathway through profitability.

The Effect of Environmental Management System, Green Investment, Company Size, Profitability, and Public Accounting Firm Reputation on Carbon Emission Disclosure in Energy Sector Companies Listed on the IDX in the Period 2019-2023

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This research aims to investigate and empirically prove the impact of environmental management systems, green investment, company size, profitability, and public accounting firms’ reputations on carbon emission disclosure. The study’s population consists of companies in the energy industry listed on the IDX between 2019 and 2023. We selected the study sample using a census sampling approach that yielded 219 observations. We used the Eviews 12 software for panel data regression analysis as our data analysis method. According to the study’s findings, carbon emission disclosure is positively and significantly impacted by environmental management systems and company size but not by green investment, profitability, and public accounting firms’ reputations.

The Effect of Profitability, Liquidity, and Leverage on Stock Returns with Inflation and Interest Rates as Moderating Variables in Energy Sector Companies Listed on the Indonesia Stock Exchange for the Period 2018 – 2023

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The purpose of this study is to examine and analyze whether profitability, liquidity, and leverage affect stock returns with inflation and interest rates as moderating variables in energy sector companies listed on the Indonesia Stock Exchange for the 2018-2023 period. This study was conducted based on information obtained at the Indonesia Stock Exchange. The sampling technique used purposive sampling. The population in this study were 87 energy companies listed on the Indonesia Stock Exchange for the 2018-2023 period, with a sample size of 55 companies and 330 observations. Hypothesis testing uses pooled data regression analysis using the EViews application. The results of this study indicate that profitability has a positive effect on stock returns, liquidity has no effect on stock returns. While leverage has a negative effect on stock returns. Inflation is able to moderate the effect of profitability on stock returns, but is unable to moderate the effect of liquidity on stock returns. Interest rates are able to moderate the effect of leverage on stock returns.

The Effect of Capital Structure, Profitability, Liquidity, and Solvency on Firm Value with Managerial Ownership as a Moderating Variable in Food and Beverage Sub-Sector Companies Listed on the Indonesia Stock Exchange 2020-2023

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The purpose of this study was to analyze how the influence of capital structure, profitability, liquidity, and solvency, can affect firm value moderated by managerial ownership in food and beverage sub-sector companies listed on the Indonesia Stock Exchange (IDX) for the period 2020-2023. This research was conducted on food and beverage sub-sector companies listed on the IDX, data information was obtained through the official website of the Indonesia Stock Exchange www.idx.com, the sampling technique used purposive sampling with a population of 94 food and beverage companies listed on the Indonesia Stock Exchange for the period 2020-2023 and a sample of 16 companies. Tests were carried out with regression panel data analysis and Moderated Regression Analysis (MRA) using E-views statistical data processing software. The results of this study indicate that liquidity and solvency variables have no significant effect on firm value, capital structure variables and profitability have a significant effect on firm value. Managerial ownership is also unable to moderate the relationship between capital structure, profitability, liquidity, and solvency on firm value.