The purpose of this paper is to find out the effect of managerial ability on managing working capital and its speed adjustment for non-financial listed companies.
Statistical descriptive have been utilized to find out the normality of data. Then measuring the managerial ability which represents the residual of the efficiency Tobit regression model. Next, utilizing single regression analysis to estimate the effect of the managerial ability on managerial ability and its speed adjustment.
The results showed that there were weak significant effects of managerial ability on working capital which indicated that conducting current assets didn't pay enough attention its importance. while hasn't significant on its speed adjustment which addresses that management hasn't any target working capital in their short-term financial planning.
Accordingly, we recommend that management should hire specialized financial managers to conduct working capital effectively instead of financial managers accounting background or develop their capabilities toward managing current assets.