Articles | 2026-10-01

Unmasking The Working Capital Paradox Amidst Indonesian Consumer Boycotts

Irene Ipal Parinding, Aisyah Zarkasi
Quantitative Economics and Management Studies, Vol. 7 No. 5 (2026) https://doi.org/10.35877/454RI.qems5021 Published: 2026-10-01
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Abstract

This study examines the impact of global consumer boycott sentiment on the fundamental financial performance of multinational retail companies in Indonesia. It employs quarterly secondary data from three IDX-listed food and beverage retailers (PT Fast Food Indonesia Tbk, PT Sarimelati Kencana Tbk, and PT Mitra Adiperkasa Tbk) for 2021–2024, producing 48 firm-quarter observations divided into pre-boycott and post-boycott periods. Liquidity (current ratio), profitability (return on assets), and operating cash flow are compared using the Shapiro-Wilk normality test, Paired Sample t-Tests, and Cohen’s D effect sizes. The results show that liquidity declined highly significantly (p < 0.01) for the two concentrated fast-food franchises, while the diversified conglomerate showed no significant change. Profitability fell on average in all three firms, but the decline was statistically significant only for one franchise. Average operating cash flow rose in all three firms, yet none of the increases was statistically significant. The findings of this study suggest that the boycott eroded liquidity and profitability in concentrated franchises, that portfolio diversification buffered the conglomerate, and that the apparent cash flow increases, attributed to inventory liquidation and other survival tactics, form a “Working Capital Paradox” that masks operational distress.

Keywords

Consumer boycottfinancial performancelegitimacy theoryliquidityprofitabilityworking capital

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How to Cite

Ipal Parinding, I., & Aisyah Zarkasi. (2025). Unmasking The Working Capital Paradox Amidst Indonesian Consumer Boycotts. Quantitative Economics and Management Studies, 7(5). https://doi.org/10.35877/454RI.qems5021

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Copyright (c) 2026 Irene Ipal Parinding
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