scholarly journals Determinants of Working Capital Management in Latin American Companies

Innovar ◽  
2014 ◽  
Vol 24 (51) ◽  
pp. 5-17 ◽  
Author(s):  
Samuel Mongrut ◽  
Darcy Fuenzalida O’Shee ◽  
Claudio Cubillas Zavaleta ◽  
Johan Cubillas Zavaleta
Keyword(s):  
Data Analysis ◽  
Latin American ◽  
Firm Value ◽  
Panel Data Analysis ◽  
Country Risk ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Unbalanced Panel Data

The aim of this study is to determine the factors that affect working capital management in Latin American companies. Using an unbalanced panel data analysis for companies quoted in five Latin American capital markets it is shown that companies in Argentina, Brazil, Chile and Mexico are holding cash excesses, which could destroy firm value. Results show that the industry cash conversion cycle, the company market power, its future sales and country risk have an influence on the way Latin American companies manage their working capital with significant differences among countries in the region.

scholarly journals Manajemen Modal Kerja Dan Dampaknya Terhadap Nilai Perusahaan Dengan Corporate Governance Sebagai Variabel Pemoderasi

2014 ◽  
Vol 6 (1) ◽  
pp. 68
Author(s):  
Adrianus Dhimas Setyanto ◽  
Ika Permatasari
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Stock Exchange ◽  
Capital Management ◽  
Working Capital ◽  
Corporate Values ◽  
Working Capital Management ◽  
Enterprise Value ◽  
Cash Conversion Cycle ◽  
The Relationship

AbstractThis study aims to determine the effect of working capital management on firm value. Corporate governance is used as a moderating variable in this study to explore the role of corporate governance in the relationship between working capital management with corporate values. Program participants of Corporate Governance Perception Index (CGPI) are used as a sample during the period from 2003 to 2011 and listed on the Indonesian Stock Exchange (IDX). We were using simple linear regression and the testing of moderating effects were calculated by Moderated Regression Analysis (MRA). The results showed that the working capital management has an influence on the value of the firm. However, corporate governance variables failed to moderate the relationship between working capital management and enterprise value. It shows that companies and investors in the market still lack concern for the program response and Corporate Governance Perception Index (CGPI) as an assessment of the application of the principles of corporate governance that has been done by the company .Keywords: Working Capital Management, Cash Conversion Cycle, Corporate Governance, Firm Values

scholarly journals Working Capital Management and the Profitability of Non- Financial Firms Listed on the Zimbabwe Stock Exchange (ZSE)

2014 ◽  
Vol 9 (1) ◽  
Author(s):  
Walter Gachira ◽  
Washington Chiwanzwa ◽  
Dingilizwe Jacob Nkomo ◽  
Runesu Chikore
Keyword(s):  
Firm Value ◽  
Positive Relationship ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Financial Firms ◽  
Cash Conversion Cycle ◽  
The Impact

Working capital is essential for the day-to-day operations of a firm. The study examines the impact of working capital management on the profitability of non-financial firms listed on the Zimbabwe Stock Exchange (ZSE). Using panel data methodology, the direction and extent of the impact of working capital management on profitability is scrutinised. The regression analysis is based on a panel sample of 39 non-financial firms listed on the ZSE from 2009 to 2013, the period under which the Zimbabwean economy has been operating under the multicurrency system. It was found that there is a positive relationship between debtors’ days and firm’s profitability, a negative relationship between creditors’ days and profitability and a positive relationship between firm’s cash conversion cycle and its profitability. There is some negative relationship between current ratio and profitability, while inventory turnover days and profitability are positively related. Debt to asset ratio as a control variable has a significant negative relationship with firm value and profitability. The results of the study show that for the companies included in the sample, there are mixed effects of the components of working capital on firm performance. Managers can thus create value for shareholders by taking note of the existence of such relationships and take measures that enhance firm profitability.

scholarly journals Apakah Profitabilitas Memediasi Pengaruh Manajemen Modal Kerja terhadap Nilai Perusahaan?

2021 ◽  
Vol 3 (2) ◽  
pp. 103-114
Author(s):  
Evan Yulandreano ◽  
Apriani Dorkas Rambu Atahau ◽  
Imanuel Madea Sakti
Keyword(s):  
Firm Value ◽  
Positive Impact ◽  
Stock Exchange ◽  
Capital Management ◽  
Working Capital ◽  
Return On Assets ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Company Value ◽  
Panel Data Regression

This study aims to examine the effect of working capital management on firm value with profitability as a mediating variable. This study uses a sample of 18 retail companies listed on the Indonesia Stock Exchange from 2014 to 2018. Working capital management is measured by Cash Conversion Cycle (CCC), profitability is measured by Return on Assets (ROA), and company value is measured by Tobins Q. Panel data regression is conducted to test the direct effect, followed by the Sobel test to test for the indirect effect. The results showed that working capital management increased firm value directly and indirectly through profitability. Working capital management with a shorter cycle results in greater profitability, thus driving firm value. The implication of this research is that retail companies are expected to shorten the company's cash cycle so that it has a positive impact on the company's profitability and value. DOI: https://doi.org/10.26905/afr.v3i2.5452

scholarly journals The Impact of Working Capital Management on Corporate’s Performance: Evidence from Egypt

2020 ◽  
Vol 15 (6) ◽  
pp. 151
Author(s):  
Yasmeen Tarek ◽  
Mary Rafik
Keyword(s):  
Data Analysis ◽  
Financial Management ◽  
Panel Data Analysis ◽  
Corporate Value ◽  
Capital Management ◽  
Working Capital ◽  
Return On Assets ◽  
Working Capital Management ◽  
Wealth Maximization ◽  
The Impact

Financial management has two main objectives profit and wealth maximization, well organized management of WC components should contribute to the achievement of these objectives. This study clarified the factors which affect WCM, which consequently will affect the business health as a whole and this will influence corporate ’performance and its corporate value. The study will examine the relation between firms profitability and its corporate value by applying panel data analysis on16 companies registered in the Egyptian stock market during the period from 2013 to 2017.The performance of companies is measured through profitability using return on assets (ROA) and firms value were measured by Tobin’s Q (TQ) ratio. The working capital management was measured by using current assets ratio (CAR), quick ratio (QR) and cash ratio (CR).

scholarly journals Effects of working capital management on firm performance and firm value – A study of the fisheries industry in Vietnam

2020 ◽  
Vol 7 (2) ◽  
Author(s):  
Vo Thi Quy ◽  
Le Thi Minh Nguyen
Keyword(s):  
Firm Performance ◽  
Firm Value ◽  
Negative Impact ◽  
Positive Impact ◽  
Method Of Moment ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Generalized Method Of Moment

This research investigates the effects of working capital management through cash conversion cycle and its components (average receivable days - ARD, average inventory days – AID, and average payable days - APD), along with the effects of the working capital management policies on firm performance and firm value in the fisheries industry. Generalized Method of Moment (GMM) was applied with the data collected from 21 fisheries companies listed on Vietnam's stock market in the period 2008 -2012. The research found that the cash conversion cycle, average receivable days, average inventory days, and average payable days have a negative impact on firm performance (ROA) and firm value (Tobin'Q). The research results also showed that aggressive working capital policy has a negative impact, but the conservative working capital policy has a positive impact on firm performance and firm value of fisheries selected companies.

scholarly journals Working capital management and shareholders' wealth creation: evidence from non-financial firms listed on the Johannesburg Stock Exchange

2017 ◽  
Vol 14 (1) ◽  
pp. 80-88 ◽  
Author(s):  
Emmanuel Kojo Oseifuah ◽  
Agyapong Gyekye
Keyword(s):  
South African ◽  
Firm Value ◽  
Stock Exchange ◽  
Wealth Creation ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Johannesburg Stock Exchange ◽  
Conversion Period

Working capital plays a vital role in shareholders’ wealth creation, yet there is a dearth of empirical studies on the relationship between working capital management and firm value in the South African economic environment. This study attempts to fill this gap by using Richards and Laughlin’s (1980) Cash Conversion Cycle theory to investigate the impact of working capital management efficiency and its separate components on firm value of South African firms listed on the Johannesburg Stock Exchange (JSE). Panel data regression methodology was used to analyze accounting data obtained from I-Net Bridge/BFA McGregor for 75 firms for the 10 year period, 2003 to 2012, to determine the nexus between WCM and profitability (proxied by return on assets). The key findings of the study are as follows: 1) there exists a significant positive relationship between firm value and both inventory conversion period and receivables conversion period; 2) the relationship between the cash conversion cycle and firm value is positive but insignificant; 3) there is a significant positive relationship between accounts payable deferral period (PDP) and profitability; 4) firm size and firm value are significantly positively related, and 5) there is a significant negative relationship between leverage and firm value.

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