The Effect of Liquidity Management, Cost Structure, and Leverage Policy on Financial Performance in the Retail Sector in Jakarta

Authors

  • Yanti Budiasih Institut Teknologi Dan Bisnis Ahmad Dahlan Jakarta
  • Deni Iskandar Universitas Kristen Krida Wacana, Jakarta

DOI:

https://doi.org/10.58812/wsaf.v2i03.1437

Keywords:

Liquidity management, Cost structure, Leverage policy, Financial performance, Retail sector

Abstract

This study examines the effect of liquidity management, cost structure, and leverage policy on the financial performance of retail sector companies in Jakarta. Utilizing a quantitative approach, primary data were collected from 165 respondents using a structured questionnaire measured on a Likert scale of 1-5. Structural Equation Modeling-Partial Least Squares (SEM-PLS 3) was employed to analyze the relationships between the independent variables—liquidity management, cost structure, and leverage policy—and the dependent variable, financial performance. The findings indicate that all three factors significantly and positively influence financial performance, with leverage policy showing the strongest effect. The study underscores the importance of strategic financial management practices for retail companies to enhance profitability and sustain competitive advantages. Practical implications include adopting efficient liquidity tools, optimizing cost structures, and strategically managing leverage to maximize growth and stability.

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Published

2024-11-29

How to Cite

Budiasih, Y., & Iskandar, D. (2024). The Effect of Liquidity Management, Cost Structure, and Leverage Policy on Financial Performance in the Retail Sector in Jakarta. West Science Accounting and Finance, 2(03), 629–639. https://doi.org/10.58812/wsaf.v2i03.1437

Issue

Vol. 2 No. 03 (2024): West Science Accounting and Finance

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Articles

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