scholarly journals On the Solvency of Firms: Can Government’s Intervention Reduce External Financing of Firms’ Working Capital in Nigeria?

2016 ◽  
pp. 47-75
Author(s):  
Uchenna Efobi ◽  
Belmondo Tanankem Voufo ◽  
Ibukun Beecroft ◽  
Peace Okougbo
Keyword(s):  
External Financing ◽  
Working Capital

scholarly journals Finance and Employment in Developing Countries

2017 ◽  
Vol 17 (189) ◽  
Author(s):  
Mai Chi Dao ◽  
Lucy Qian Liu
Keyword(s):  
Developing Countries ◽  
Job Creation ◽  
Financial Constraint ◽  
External Financing ◽  
Working Capital ◽  
Firm Level ◽  
External Finance ◽  
The World Bank ◽  
Financing Constraint ◽  
Capital Financing

We study the effect of external financing constraint on job creation in emerging markets and developing countries (EMDC) at the firm level by looking at a specific transmission channel - the working capital channel. We develop a simple model to illustrate how the need for working capital financing of a firm affects the link between financial constraint and the firm's job creation. We show that the effect of relaxing financial constraint on job creation is greater the smaller the firm scale and the more labor-intensive its production structure. We use the World Bank Enterprise Surveys data to test the main predictions of the model, and find strong evidence for the working capital channel of external finance on firm employment.

Supply chain finance for small and medium sized enterprises: the case of reverse factoring

2016 ◽  
Vol 46 (4) ◽  
Author(s):  
Spyridon Damianos Lekkakos ◽  
Alejandro Serrano
Keyword(s):  
Supply Chain ◽  
Design Methodology ◽  
Operational Performance ◽  
External Financing ◽  
Working Capital ◽  
Base Stock Policy ◽  
Multi Stage ◽  
And Performance ◽  
Stock Policy ◽  
The Impact

Purpose Faced with increasing pressure to meet short-term financing needs, companies are looking for ways to unlock potential funds from within the supply chain. Recently, reverse factoring (RF) has emerged as a financing solution that is initiated by the ordering parties to help their suppliers secure financing of receivables at favorable terms. This paper studies the impact of RF schemes on SMEs’ operational decisions and performance. Design/methodology/approach We model a supplier’s inventory replenishment problem as a multi-stage dynamic program and derive the supplier’s optimal inventory policy for two cases: 1) no access to external financing; 2) access to external financing through RF or traditional factoring (TF). A number of numerical experiments assesses the supplier’s operational performance. Findings A working capital-dependent base-stock policy is optimal. The optimal policy specifies the sell-up-to level of accounts receivable with regard to their maturity. RF considerably improves a supplier’s operational performance while providing the potential to unlock more than 10% of the supplier’s working capital. When RF is associated with credit term extension and the supplier has access to alternative sources of financing, the value of RF is then lower than intuitively expected unless the interest spread is considerably large. Originality/value This is the first attempt to analytically study the impact of RF in a stochastic multi-period setting.

Does Capital Structure Influences Working Capital Intensity and Growth Opportunity of a Firm: An Evidence From Tanzanian Firms

2014 ◽  
Vol 4 (1) ◽  
pp. 43
Author(s):  
Ntogwa Ng'habi Bundala
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Secondary Data ◽  
Capital Intensity ◽  
Listed Companies ◽  
External Financing ◽  
Working Capital ◽  
Documentary Analysis ◽  
Growth Opportunity ◽  
Current Asset

The study was based on determination of influences of capital structure on the working capital and growth opportunity of the listed companies in Tanzania. The study targeted to meet three objectives.  These objectives are to investigate  on how Tanzanian listed companies behave in their capital structure, working capital intensity and growth opportunity, to examine the influence of the capital structure on working capital intensity and growth opportunity of Tanzanian listed companies and to examine the potency of working capital (current asset) in advocacy of growth opportunity of Tanzanian listed companies. The study used descriptive study strategy on ten listed companies at Dar Es Salaam Stock Exchange as per October, 2012.  The documentary analysis and website survey used to collect the secondary data.  The multivariate multiples regression model used to analyses data. The findings of the study lay that the listed companies of Tanzania are unleveraged and growing fast and are illiquidity. It is found that there is no significant relation of capital structure, working capital and growth opportunity of Tanzanian listed companies. The potency of current asset to generate sales of companies is averaged at 0.555 Tanzanian shillings per one shilling of sales. It is recommended that companies aiming for growing should adhere to investment opportunity available in their companies and should prefer internal financing to external financing.

Pengaruh Manajemen Modal Kerja Terhadap Profitabilitas Dan Risiko

Liquidity ◽  
2017 ◽  
Vol 6 (2) ◽  
pp. 95-102
Author(s):  
Sri Setia Ningsih
Keyword(s):  
T Test ◽  
Raw Material ◽  
Risk Level ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Trading Company ◽  
Regression Correlation ◽  
Descriptive Method

The purpose of this research is to know about working capital management applied, and its influence on profitability and risk. The research object is trading company moves in import & distribute chemical raw material. The research used analysis descriptive method, and the hypothesis was testing by simple linier regression, correlation, and determination. The result of the research shows that the effect of the implementation of working capital management on the change of the net working capital with tend to rise has a profitability level of 10.4% lower than the net working capital change with tend to go down of 46%, but instead on the risk level, the net working capital change with tend to rise has a risk level of 43.8% higher than the change in net working capital with tend to go down of 0.3%.Based on  t test, the result shows that the net working capital change influence  is not significant  to profitability and risk.

PENGARUH PERPUTARAN PIUTANG DAN SOLVABILITAS TERHADAP KONDISI FINANCIAL DISTRESS PERUSAHAAN MANUFAKTUR SEKTOR GARMEN DAN TEKSTIL DI BURSA EFEK INDONESIA

2018 ◽  
Vol 19 (2) ◽  
pp. 87
Author(s):  
Siska Wulandari
Keyword(s):  
Financial Distress ◽  
Free Market ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Multiple Linear Regression Analysis ◽  
Working Capital ◽  
Leverage Ratio ◽  
Ratio Effect ◽  
Waste Bank ◽  
Solvency Ratio

Manufacture Sub Sector Garment And Textile have financial distress condition. Increas of sales is one of choice for company can be competitive in free market. But increase of sales will be followed by the many possibilities of uncollected receivable or the low receivable turnover which can effect forced the company to further provide working capital. One way is to get working capital from a third part or what we call debt.This research aims to determine the effect of receivable turnover and the solvency ratio toward the financial distressThe problems of the research were: 1) is the receivable turnover effect toward financial distress condition on Garmen and textile company Listed on IDX on 2011-2015? 2) is the leverage ratio effect toward financial distress condition on Garmen and textile company Listed on IDX on 2011-2015 ? 3) Are the receivable turnover and solvency ratio effect toward financial distress condition on Garmen and textile company Listed on IDX on 2011-2015?The sample of this research is 11 Manufacture company of sub sector Garmen And Textile were taken by using purposive sampling techniques. This research data used secondary data that getting from literature review. Data were tested using multiple linear regression analysis to determine the effect between one variable with another variables, and the data was then processed using SPSS 22.0 for windows.Result of the research showed that partially, receivables turnover hadn’t a significant effect toward  the financial distress. Partially, solvency ratio (Debt to Asset) had a significant influence toward financial distress Simultaneously, receivable turnover and solvency ratio had a significant effect toward financial distress. Kata kunci:Waste Bank, Waste Bank Management, Waste Bank Basic Concepts, Economic Improvement of the Family

Analisis Pengembalian Kredit Terhadap Profitabilitas Pada PT Bank Sumut Cabang Gunungsitoli

Owner ◽  
2019 ◽  
Vol 3 (2) ◽  
pp. 160
Author(s):  
Victorinus Laoli
Keyword(s):  
Data Collection ◽  
Positive Influence ◽  
Business Continuity ◽  
Working Capital ◽  
The People ◽  
Data Collection Technique

One manifestation of the important role of banking in a region, as implemented by PT Bank Sumut, Gunungsitoli Branch, is to distribute loans for investment, consumption and working capital for the people in the area. The purpose of providing credit for banks is the return of credit that earns interest and can increase income to finance activities and business continuity. From the results of research conducted with this data collection technique, it shows that PT Bank Sumut has a number of loans from 2009 to 2014 which each year rises. From this study, it is also known that the rate of credit repayment has a positive influence on the level of profitability.

Financial Management of Tires Retail and Restaurant Business in Greater Jakarta

2019 ◽  
Vol 2 (4) ◽  
pp. 267-275
Author(s):  
Sung Suk Kim ◽  
Jacob Donald Tan ◽  
Rita Juliana ◽  
John Tampil Purba
Keyword(s):  
Financial Management ◽  
Management Practices ◽  
Working Capital ◽  
Structured Interviews ◽  
Short Term ◽  
Direct Observations ◽  
Medium Enterprises ◽  
Cash Reserves ◽  
Retained Earnings ◽  
Computerized System

This study aims to explore the financial management practices ofsmall-and-medium-enterprises (SMEs) in the Greater Jakarta (Jabodetabek). We investigate into 3 SME cases by conducting the semi-structured interviews with the owner-managers and using direct observations to know the practices of financial management of SMEs. Through the research, we have found six propositions related to the practice of short-term financial management. They apply bootstraps to ensure availability of working capital. They set aside cash reserves from retained earnings and minimize loans from financial institutions. They have the computerized system to track receivables facilitating working capital needs. They keep theirinventory control efficient to manage working capital. They screen customers using transactional records and reputations to minimize the risk of bad debts.

Sign in / Sign up

Export Citation Format

Share Document