“The antecedents to efficient working capital management (EWCM)”: Evidence from Turkish manufacturing sector

2023 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Hüseyin Özdeer ◽  
Mumtaz Ali ◽  
Mehdi Seraj
Keyword(s):  
Manufacturing Sector ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management

scholarly journals Working Capital Management Antecedants Impact on Firm Specific Factors: A Ten Year Review of Karachi Stock Exchange

2015 ◽  
Vol 53 ◽  
pp. 107-111
Author(s):  
Sajid Iqbal
Keyword(s):  
Stock Exchange ◽  
Manufacturing Sector ◽  
Sample Period ◽  
Regression Analyses ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Proxy Variable ◽  
Specific Factors ◽  
Relationship Of

The study aims of investigate relationship of working capital antecedents and profitability of the company. Seven variables are taken as proxy variable to measure working capital and its management. Population of the study is based on Karachi stock exchange listed companies. The sample of study is manufacturing sector of Pakistan. Thus, sample period contains on the ten years from (2005-2014). All variables have sound reliability and data is normally distributed. Therefore, correlation and regression analyses are applied. Hence, study revealed significant relationship of working capital management and profitability.

Benchmarking the efficiency model for working capital management: data envelopment analysis approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Himanshu Seth ◽  
Saurabh Chadha ◽  
Satyendra Sharma
Keyword(s):  
Data Envelopment Analysis ◽  
Manufacturing Sector ◽  
Fixed Effect Model ◽  
Manufacturing Industries ◽  
Data Envelopment ◽  
Capital Management ◽  
Working Capital ◽  
Firm Level ◽  
Working Capital Management ◽  
Content Type

PurposeThis paper evaluates the working capital management (WCM) efficiency of the Indian manufacturing industries through data envelopment analysis (DEA) and empirically investigates the influence of several exogenous variables on the WCM efficiency.Design/methodology/approachWCM efficiency was calculated using BCC input-oriented DEA model. Further, the panel data fixed effect model was used on a sample of 1391 Indian manufacturing firms spread across nine industries, covering the period from 2008 to 2019.FindingsFirstly, the WCM efficiency of Indian manufacturing industries has been stable over the analysis period. Secondly, the capacity to generate internal resources, size, age, productivity, gross domestic product and interest rate significantly influence WCM efficiency.Research limitations/implicationsFirst, the selected study period has observed various economic uncertainties including demonetization and recession, so the scenario might differ in normal conditions or country-wise. Second, the findings might not be generalizable to the developed economies, since the current study sample belongs to a developing economy, which further provides scope for comparative study.Practical implicationsAn efficient model for managing the working capital comprising most vital determinants could enhance the firms' valuation and goodwill. Also, this study would be helpful for financial executives, manufacturers, policymakers, investors, researchers and other stakeholders.Originality/valueThis study estimates the industry-wise WCM efficiency of the Indian manufacturing sector and suggests measures to the concerned parties on areas to focus on and provide evidence on the estimated relationships of firm-level and macroeconomic determinants with WCM efficiency.

scholarly journals Impact of Working Capital Management on Profitability and Value of Firm: A Study of Manufacturing Sector of Pakistan

2018 ◽  
Vol 14 (2) ◽  
pp. 1-12
Author(s):  
Munawar Shabbir ◽  
Keyword(s):  
Stock Exchange ◽  
Manufacturing Sector ◽  
Generalized Method Of Moments ◽  
Manufacturing Firms ◽  
Raw Material ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Value Of Firm

Manufacturing is third largest sector of Pakistan's economy. The manufacturing firms convert raw material to finished goods that is useful for people. The whole process (raw material to end product) requires huge amount of working capital. Any anomaly in working capital management directly effects on performance, profitability and value of firm. The present study explores impact of working capital management on profitability as well as on value of firm. The study collects random sample of 30 manufacturing firms registered on Pakistan Stock Exchange for twelve years (2005 to 2016). The regression models were estimated using Generalized Method of Moments. The results showed profitability and value of firms decrease with increase in receivable and inventory turnover because delay in receivables or sale of inventory enhance financing needs for working capital. Liquidity contribute largely in increase profitability as compared to value of firm. However, some variables showed partial results for both models for example profitability increased with rise in growth and cash conversion cycle. Value of firm was decreased with delay in accounts payable turnover because it cased distrust of supplier and investors. We expected size will increase profitability and value but contrary results expressed decline in both. The research findings suggest firms in Pakistan should focus on efficient working capital management for better profitability and value addition of firm.

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