Purpose: This study aims to investigate female top managers’ choice of working capital management
policies and its effect on firm profitability. The theoretical arguments about the effects of working
capital management policies on firm profitability and empirical evidence are often inconsistent.
Additionally, it is likely that the policy choice is closely related to the gender of top managers.

Methodology: Our research sample was all 136 manufacturing firms listed in Indonesian Stock
Exchange during the 2013–2017 period. Following the hypothesis formulation, this study employed
four estimation models tested using panel data regression.

Findings: Female CFOs tend to choose more conservative working capital investment policies.
Moreover, conservative investment policies have a positive effect on firm profitability and mediate
the impact of top female managers on firm profitability.

Originality: Previous literature tends to overlook the role of top female managers in affecting
working capital management policies and the effect of these policies on firm profitability. In this
respect, this study provides insights on the role of the gender of top managers as a factor that likely
explains the choice of working capital management policies in manufacturing firms which, in turn,
affect firm profitability.