FINANCIAL RESOURCES AND CORPORATE PERFORMANCE

ABSTRACT
This study aims to determine the effect of financial resources on company performance.
This study uses a sample of manufacturing companies listed on the Indonesia Stock
Exchange 2012-2018. Company resources become an important part of the development
the company, especially financial resources which are the main factor in carrying out the
company's operational activities. The company's performance becomes benchmark for
investors and creditors to assess the company's condition. The company's financial
resources in this study come from cash flow, liquidity, and leverage. Cash flow used
financial analysis to determine the income and expenses made by the company. Liquidity
used to assess the company's ability to meet its obligations. Leverage as company debt
used to finance and purchase company assets. The results showed that only free cash flow
had significant effect on company performance. This happens because the company's
performance is reflected in the higher will increase the amount of profit earned by
investors. This shows that the company utilizes ability of the company's internal
resources to utilize financial resources to create competitive advantage so that the
company's performance can manage its cash flow to finance assets owned by the
company. The results of this study support the resource-based theory-based view
Keywords : corporate performance, resource based view, financial resource