Surviving Financial Shocks: Cash Flow Volatility and Corporate Resilience in Indonesia
DOI:
https://doi.org/10.32502/4m6zgf79Kata Kunci:
Cash Flow Volatility, Financial Performance, Financial Resilience, Manufacturing CompaniesAbstrak
This study examines the effects of financial resilience and cash flow volatility on financial performance, measured by Return on Assets (ROA), among manufacturing companies listed on the Indonesia Stock Exchange during 2020–2024. Using a quantitative approach, the study analyzes 220 firm-year observations through multiple linear regression. The results show that financial resilience has a positive and significant effect on financial performance, while cash flow volatility has a negative and significant effect. Simultaneously, both variables significantly affect financial performance. These findings indicate that stronger financial resilience enables firms to maintain operational continuity and financial flexibility, whereas higher cash flow volatility increases liquidity uncertainty and constrains financial management. Consistent with Agency Theory, effective management of financial resources and cash flows can reduce managerial inefficiencies and agency conflicts, thereby supporting improved financial performance.
Referensi
Ahmad, K. K., Salih, K. H., & Sangawi, S. S. (2024). The Impact of Operating Cash Flow on Corporate Profitability: Amman Stock Exchange case study. Journal of Economics and Administrative Sciences, 30(140), 532–543.
Alam, S., Das, S. K., Dipa, U. R., & Hossain, S. Z. (2024). Predicting financial distress through ownership pattern: Dynamics of financial resilience of Bangladesh. Future Business Journal, 10(1), 91.
Arifaj, A. H., Berisha, V., Morina, F., & Avdyli, E. (2023). Exploring the impact of cash flow, company size, and debt on financial performance in corporations. Investment Management & Financial Innovations, 20(3), 264.
Ball, R., & Nikolaev, V. V. (2022). On earnings and cash flows as predictors of future cash flows. Journal of Accounting and Economics, 73(1), 101430.
Bamisaye, T. O., Owoeye, T. O., & Awe, S. O. (2025). Financing Cash Flow Management And Firm Performance: Evidence From Nigerian Listed Companies. FUDMA Journal of Business Management, 3(2), 49–70.
Banimahd, B., Abedini, M., Moradzadehfard, M., & Cheshmehsabzi, A. S. (2021). Analyze the Determining Factors of Manager Efficiency in the Generation of Operating Cash Flow. Navus-Revista de Gestão E Tecnologia, 11, 1–11.
Boshnak, H. (2023). The impact of capital structure on firm performance: evidence from Saudi-listed firms. International Journal of Disclosure and Governance, 20(1), 15–26.
Chen, I.-J., & Nguyen, H. T. D. (2025). Corporate diversification, financial flexibility and firm performance during the Covid-19 pandemic. The Quarterly Review of Economics and Finance, 102053.
Fama, E. F., & Jensen, M. C. (1983). Agency problems and residual claims. The Journal of Law and Economics, 26(2), 327–349.
Hamid, F. S., Loke, Y. J., & Chin, P. N. (2023). Determinants of financial resilience: insights from an emerging economy. Journal of Social and Economic Development, 25(2), 479–499.
Juan, S.-J., & Li, E. Y. (2023). Financial performance of firms with supply chains during the COVID-19 pandemic: the roles of dynamic capability and supply chain resilience. International Journal of Operations & Production Management, 43(5), 712–737.
Khresat, O., Al-Fasfus, F., Shaban, O., Shahwan, Y., & Alsilawi, A. (2023). Impact of cash flow statement elements on financial performance: The mediating role of capital in private hospitals in Jordan. In Artificial Intelligence (AI) and Finance (pp. 821–830). Springer.
Kuroni, W., Zulaihati, S., & Sumiati, A. (2023). The Effect Of Operating Cash Flow, Accounting Profit, And Company Size On Stock Returns In Manufacturing Companies In The Basic Material Sector Listed On The Idx In 2020-2021. Current Advanced Research On Sharia Finance And Economic Worldwide, 3(1), 56–72.
Lee, S., & Chen, G. (2022). Understanding financial resilience from a resource-based view: Evidence from US state governments. Public Management Review, 24(12), 1980–2003.
Lulaj, E., & Minguez-Vera, A. (2024). Cash flow dynamics: Amplifying swing models in a volatile economic climate for financial resilience and outcomes. Scientific Annals of Economics and Business, 71(3), 315–336.
Marsat, S., Pijourlet, G., & Ullah, M. (2021). Is there a trade‐off between environmental performance and financial resilience? International evidence from the subprime crisis. Accounting & Finance, 61(3), 4061–4084.
Neldy, M. R. (2025). Moderating Effects of Exchange Rates in the US-China Context: A Study on Manufacturing Purchasing Managers’ Index (PMI), Stock Indices, and Crude Oil Price. European Journal of Business and Management Research, 10(2), 95–102.
Nikbakht, Z. (2024). The relationship between cash flows of operating, investments, and financing activities with the firm value. International Journal of Finance & Managerial Accounting, 9(33), 101–112.
Olagunju, A., Ojeleye, A. D., & Kazeem, B. L. O. (2022). Operating cash flow and financial performance of listed cement manufacturing companies in Nigeria. Berjaya Journal of Services and Management, 18(1), 1–10.
Qaisar, M. N., Perveen, A., & Munir, S. (2025). Financial Resilience Strategies: Liquidity, Cost Management, and Risk Planning in Economic Downturns. Advance Journal of Econometrics and Finance, 3(2), 88–100.
Rezaei Soufi, H., Esfahanipour, A., & Akbarpour Shirazi, M. (2023). A quantitative measure of financial resilience of firms: Evidence from Tehran stock exchange. Scientia Iranica, 30(1), 302–317.
Rompotis, G. G. (2024). Cash flow management, performance and risk: evidence from Greece. Euromed Journal of Business, 20(3), 595–627. https://doi.org/10.1108/EMJB-09-2023-0245
Roqijah, I., Nugroho, W. S., & Nurcahyono, N. (2022). The Effect of Profitability, Operating cash flow, Economic Value Added and Firm Size on Stock Return. MAKSIMUM: Media Akuntansi Universitas Muhammadiyah Semarang, 12(2), 164–174.
Wójtowicz, K. A., & Hodžić, S. (2022). Financial resilience in the face of turbulent times: Evidence from Poland and Croatian cities. Sustainability, 14(17), 10632. https://doi.org/10.3390/su141710632
Zahedi, J., Salehi, M., & Moradi, M. (2022). Identifying and classifying the financial resilience measurement indices using intuitive fuzzy DEMATEL. Benchmarking: An International Journal, 30(4), 1300–1321. https://doi.org/10.1108/BIJ-07-2021-0395
Zhang, X., Wu, K.-S., & He, M. (2023). Concave-convex effect of financial resilience on corporate financial performance: quantile regression approach. Humanities and Social Sciences Communications, 10(1), 1–14.
Unduhan
Diterbitkan
Terbitan
Bagian
Lisensi
Hak Cipta (c) 2026 Tabah Rizki, Muhammad Prans Panca Renta
Artikel ini berlisensiCreative Commons Attribution-ShareAlike 4.0 International License.
