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CHAPTER III RESEARCH METHODOLOGY
A. Scope of Research
This research uses quantitative method by using Microsoft Excel and SPSS 20.0 application. The research design or relationship between variables
uses association causality. Causality is a type of relationship, which can be seen from the characteristics of the relationship between independent and
dependent variables, if the dependent variable explained or influenced by independent variables, it can be stated that variable X cause variable Y
Indriantoro and Supomo,2009. The scope of the research is the annual report of automotive and
components listed in Indonesian Stock Exchange IDX within 2008-2012. This research will examine the influence of working capital management and
liquidity towards profitability.
B. Sampling Method
Sampling method is kind of method taken from population data. Sample is a part of number population. Research will not take all the
populations, because due to limited funds, man power and time. So, sample can represents the population Sugiyono,2009. Researcher uses non-
probability sampling are elements of the population does not have the same chance to selectas a sampleSugiyono,2009.
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This research conduct by purposive sampling method. Purposive sampling is divided into two types, quota sampling and judgmental sampling.
In this research, researcher will use judgmental sampling as sampling method. In judgmental sampling, subjects selected on the basis of their expertise in the
subject investigated Indriantoro et al, 2009. The research data are taken from annual report of manufacturing company in the sector of automotive and
components listed in Indonesia Stock Exchange IDX. The reason why the researcher chooses manufacturing company as a research object because
manufacturing company is the largest company’s sector listed in IDX. Besides that, in automotive and component industry is one of the sectors most
substantial investment growth in 2012. So that, it is good to choose this sector as research sample because most of company’s substantial investment growth
in 2012. Regarding to the population in this research must meet the following
criteria : 1. Manufacturing company in the sector of automotive and
components listed in IDX during period of 2008-2012. 2. The company has published annual report in period 2008-2012.
3. The company has the data of working capital turnover, inventories turnover, receivables turnover, current ratio, financial ratio in
detail that will be tested in its annual report.
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Based on these criteria the obtained samples are 12 automotive and components companies in the period 2008-2012 in Indonesia Stock
Exchange :
Table 3.1 List of Sample
No Code
Company
1. ASII
Astra International Tbk 2.
AUTO Astra Otoparts Tbk
3. GJTL
Gajah Tunggal Tbk 4.
GDYR Goodyear Indonesia Tbk
5. BRAM
Indo Kordsa Tbk 6.
IMAS Indomobil Sukses International Tbk
7. INDS
IndospringTbk 8.
LPIN Multi Prima Sejahtera Tbk
9. MASA
Multistrada ArahSarana Tbk 10.
NIPS Nipress Tbk
11. PRAS
Prima Alloy Steel Tbk 12.
SMSM Selamat Sempurna Tbk
Sources: idx.co.id
C. Data Collection Method
The research uses secondary data. The type of data obtained through research literature which provide theoretical basis and frame of mind to
support primary data, as well as to support problem identification discussion Indriantoro et al, 2009. Secondary data refer to information gathered from
sources that already exist Uma Sekaran and Roger Bougie, 2010. This research data will be acquired from reports on the company’s website, annual
reports of company or the media reports.
