WORKING CAPITAL MANAGEMENT, FIRM EFFICIENCY, AND PROFITABILITY OF THE SMALL AND MEDIUM ENTERPRISES REGISTERED ON THE INDONESIA STOCK EXCHANGE IN THE TIME OF COVID-19

Abstract

This study has two primary objectives. First, determine how the working capital management strategies were applied by small and medium-sized firms (SMEs) to perform managerial tasks during the COVID-19 epidemic. Second, look into how, in the epidemic of COV-19 period, working capital and company efficiency are related. Small and medium-sized businesses that were listed on the Indonesia Stock Exchange (IDX) provided the data used in this investigation. The method employed was purely descriptive in the realm of research and exploration, and analysis of multiple linear regression was conducted using the Eviews 10 program. According to our research, during the COVID-19 epidemic, 40% of SMEs employed aggressive working capital measures. Prior to the pandemic in 2019, the policy of over 85% of SMEs was aggressive working capital. The second conclusion was that, statistically speaking, working capital strategies during the COVID-19 epidemic increased profitability.