Surviving Financial Shocks: Cash Flow Volatility and Corporate Resilience in Indonesia
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.
Authors
- Muhammad Prans Panca Renta
- Tabah Rizki
Institutions
- Sriwijaya University (ID)
Publication Details
- Journal
- BALANCE Jurnal Akuntansi dan Bisnis
- Published
- 2026-11-01
- DOI
- https://doi.org/10.32502/4m6zgf79
- Primary Topic
- Working Capital and Financial Performance
- Type
- article
- Field-Weighted Citation Impact
- 0.00