Enhancing Shareholder Value Through Efficient Working Capital Management: An Empirical Evidence from India

2017 ◽  
Author(s):  
Palanisamy Saravanan ◽  
Maram Srikanth ◽  
Tara Shankar Shaw ◽  
Sivasankaran Naryanasamy
Keyword(s):  
Empirical Evidence ◽  
Shareholder Value ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management

scholarly journals The Impact of Working Capital Management on Firm Profitability: Empirical Evidence from the Polish Listed Firms

2020 ◽  
Vol 14 (1) ◽  
pp. 9
Author(s):  
Sorin Anton ◽  
Anca Afloarei Nucu
Keyword(s):  
Empirical Evidence ◽  
Ordinary Least Squares ◽  
Optimum Level ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Listed Firms ◽  
Firm Profitability ◽  
Break Even Point ◽  
The Impact

The purpose of this study is to investigate the relationship between working capital and firm profitability for a sample of 719 Polish listed firms over the period of 2007–2016. The scarcity of empirical evidence for emerging economies and the importance of working capital efficiency motivate the research on the working capital–financial performance relationship. The paper adopts a quantitative approach using different panel data techniques (ordinary least squares, fixed effects, and panel-corrected standard errors models). The empirical results report an inverted U-shape relationship between working capital level and firm profitability, meaning that working capital has a positive effect on the profitability of Polish firms to a break-even point (optimum level). After the break-even point, working capital starts to negatively affect firm profitability. The study brings theoretical and practical contributions. It extends and complements the literature on the field by highlighting new evidence on the non-linear interrelation between working capital management (WCM) and corporate performance in Poland. From the practitioners’ perspective, the results highlight the importance of WCM for firm profitability.

scholarly journals Working Capital Management and Corporate Profitability: Empirical Evidence from Vietnam

2018 ◽  
Vol 10 (1) ◽  
pp. 195-206 ◽  
Author(s):  
An Thanh Hong Nguyen ◽  
Tuan Van Nguyen
Keyword(s):  
Empirical Evidence ◽  
Trade Credit ◽  
Capital Management ◽  
Working Capital ◽  
Credit Policy ◽  
Working Capital Management ◽  
Listed Firms ◽  
Firm Profitability ◽  
Real Practice ◽  
The Relationship

Abstract This paper examines the relationship between working capital management and corporate profitability of Vietnamese listed firms. We propose a different interpretation of the empirical evidence that takes into account the dependency of collection and payment decisions. This helps establish the causal relationship between working capital management and firm profitability, which made the interpretation of the empirical results more meaningful and consistent with the real practice of firms. The analysis results based on a sample of 374 Vietnamese listed firms in the period from 2008 to 2014 show that working capital management positively affects the performance of Vietnamese listed companies. However, the results also indicate that Vietnamese firms do not intentionally use trade credit policy to enhance firms’ performance and the observed relationship between trade credit and profitability, though significant, is just by coincidence.

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