scholarly journals Components of working capital and profitability in Saudi Arabian companies

2021 ◽  
Vol 18 (3) ◽  
pp. 52-62
Author(s):  
Abdul Rahman Shaik
Keyword(s):  
Stock Exchange ◽  
Manufacturing Sector ◽  
Tobin’S Q ◽  
Working Capital ◽  
Tobin's Q ◽  
Return On Equity ◽  
Cash Conversion Cycle ◽  
Operating Profit ◽  
Industrial Sectors ◽  
Firm Profitability

The study examines the influence of the cash conversion cycle (one of the components of working capital) on the firm profitability measured in terms of return on equity (ROE), return on assets (ROA), Tobin’s q, and gross operating profit (GROP) in the manufacturing sector of Saudi Arabia. The study selects a sample of 100 companies from nine industrial sectors listed on the Tadawul Stock Exchange starting from 2008 to 2019. A pooled regression is estimated to report the empirical results. The results report a positive and significant association between the components of working capital in terms of cash conversion cycle and the firm profitability in terms of ROA, ROE, and Tobin’s q, except for the GROP, where there is a negative and significant relationship. The study reports that the growth in firm performance is associated with supplier’s financing terms and inventory ordering cost. The results also show that larger firms are more profitable than smaller firms. Hence, the current study confirms the formulated hypothesis of having a significant association between the components of working capital and firm profitability.

scholarly journals ASPEK KEUANGAN YANG MEMPENGARUHI KINERJA PERUSAHAAN MENGGUNAKAN NILAI PASAR TOBIN’S Q

2021 ◽  
Vol 10 (2) ◽  
pp. 236-255
Author(s):  
Alfonsa Dian Sumarna ◽  
Nur Fitria Yuliani
Keyword(s):  
Significant Influence ◽  
Trade Balance ◽  
Stock Exchange ◽  
Company Performance ◽  
Tobin’S Q ◽  
Manufacturing Companies ◽  
Working Capital ◽  
Tobin's Q ◽  
Cash Conversion Cycle ◽  
Collection Period

The working capital is an important evalution for calculating company performance which indirectly influence the Indonesia’s trade balance. This study aims to examine the influence of working capital on the performance before (2016-2017) and after (2018-2019) trade balance defisit. Working capital consists of Receivable Collection Period, Inventory Conversion Period, Payable Deferral Period, and Cash Conversion Cycle, while liquidity proxied by Current Ratio. Company performance is proxied by the company value using Tobin’s Q. This study using purposive sampling of manufacturing companies sub-sector consumer goods industry that are listed in Indonesian Stock Exchange which fulfill the criterias with total observation are 106 samples. Data analysis using Eviews9. The hypothesis tests using t-test and F-test. The finding is working capital and liquidity before defisit period have significant influence to company performance except Receivable Collection Period. Meanwhile after defisit period working capital and liquidity have significant influence to company performance except Receivable Collection Period and Payable Deferral Period. The result for both period is significant influence simultaneously.

scholarly journals Working Capital Management dan Firm Profitability Perusahaan Sektor Manufaktur di Bursa Efek Indonesia dan Bursa Efek Filipina Periode 2014-2018

2020 ◽  
Vol 1 (1) ◽  
pp. 31-42
Author(s):  
Ricky Adiyanto ◽  
Werner Ria Murhadi ◽  
Liliana Inggrit Wijaya
Keyword(s):  
Stock Exchange ◽  
Linear Regression Method ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Accounts Receivable ◽  
Cash Conversion Cycle ◽  
Accounts Payable ◽  
Conversion Period ◽  
Firm Profitability

This study aims to analyze the effect of working capital management on the profitability of companies in Indonesia and Philippines. This study uses secondary data from companies listed in Indonesia Stock Exchange and Philippines Stock Exchange in the 2014-2018 period.  The sample used in this study includes manufacturing sector companies listed in Indonesia Stock Exchange and Philippines Stock Exchange in that period. This research uses multiple linear regression method. Working capital is measured using cash conversion cycle, accounts receivable conversion period, inventories conversion period, and accounts payable deferral period. The results of the Indonesian sample show that the cash conversion cycle and its components, namely the accounts receivable conversion period, the inventories conversion period, and the accounts payable deferral period have a significant positive effect on firm profitability. For the Philippine sample, the result of the study show that the cash conversion cycle and its components does not have a significant effect on firm profitability. Keywords: cash conversion cycle, accounts receivable conversion period, inventories conversion period, accounts payable deferral period

scholarly journals Pengaruh Manajemen Modal Kerja terhadap Gross Operating Profit Perusahaan Manufaktur di Bursa Efek Indonesia Tahun 2014-2018

2021 ◽  
Vol 5 (3) ◽  
pp. 307
Author(s):  
Tommy Tommy
Keyword(s):  
Stock Exchange ◽  
Debt Ratio ◽  
Sales Growth ◽  
Manufacturing Companies ◽  
Working Capital ◽  
Working Capital Management ◽  
Verification Method ◽  
Cash Conversion Cycle ◽  
Operating Profit ◽  
Research Period

The purpose of this study was to analyze the Effect of Working Capital Management on Gross Operating Profit in Manufacturing Companies in the Indonesia Stock Exchange in 2014-2018. This study uses a quantitative approach with an associative method to determine whether there is an influence from account receivable period, account payable period, account inventory period, cash conversion cycle to gross operating profit with financial debt ratio and sales growth as proxies and verification method that is testing the hypotheses perform based on data. This study uses a sample of 33 manufacturing companies on the stock exchange as panel data. The results of this study indicate that partially and simultaneously the account receivable period, account inventory period, account inventory period, cash conversion cycle with financial debt ratio and sales growth as proxies has a positive and significant effect on gross operating profit on manufacturing companies listed on the Indonesia Stock Exchange during the 2014-2018 research period. Tujuan penelitian ini adalah untuk menganalisis Pengaruh Manajemen Modal Kerja Terhadap Gross Operating Profit pada Perusahaan Manufaktur di Bursa Efek Indonesia Tahun 2014-2018. Penelitian ini menggunakan pendekatan kuantitatif dengan metode asosiatif untuk mengetahui ada tidaknya pengaruh dari account receivable period, account payable period, account inventory period, cash conversion cycle terhadap gross operating profit dengan proksi finansial debt ratio dan sales growth dan menggunakan metode verifikatif yaitu menguji kinerja hipotesa berdasarkan data. Penelitian ini menggunakan sampel 33 perusahaan manufaktur di bursa efek sebagai data panel. Hasil penelitian ini menunjukkan secara parsial dan simultan account receivable period, account inventory period, account inventory period, cash conversion cycle dengan proksi financial debt ratio dan sales growth berpengaruh positif dan signifikan terhadap gross operating profit pada perusahaan manufaktur yang tercatat di Bursa Efek Indonesia selama periode penelitian 2014-2018. 

scholarly journals AGGREGATE AND DISAGGREGATE MEASURES OF OPERATING AND NON-OPERATING WORKING CAPITAL INFLUENCE ON FIRM PERFORMANCE: EVIDENCE FROM MALAYSIA

2021 ◽  
Vol 17 (No.1) ◽  
pp. 1-26
Author(s):  
Rabia Bashir ◽  
Angappan Regupathi
Keyword(s):  
Firm Performance ◽  
Tobin’S Q ◽  
Working Capital ◽  
Short Term ◽  
Return On Assets ◽  
Tobin's Q ◽  
Cash Conversion Cycle ◽  
Long Term Performance ◽  
Term Performance

The study is aimed at investigating the following issues: firstly, whether the different types of working capital, namely operating and non-operating working capital influence the short-term (return on assets) and long-term (Tobin’s Q) firm performance differently, and secondly whether the different measures of operating working capital, namely disaggregated and aggregated (cash conversion cycle) operating working capital, influence the short-term (return on assets) and long-term (Tobin’s Q) firm performance differently. It uses the panel data of 208 listed non-financial firms in Malaysia covering the period from 2013 to 2017, and the data has been sourced from Datastream. It employs the panel corrected standard errors regression model. The study has found that quicker sale of inventory increased both the short-term and long-term performance of the firm. Likewise, faster collection of receivables increased the long-term, but not short- term, performance. However, prompter payment of payables increased both the short-term and long-term performance. The study has also found that the disaggregated working capital measures – inventory, receivables, and payables contributed to a more nuanced influence of working capital on performance, compared to the aggregated working capital. The study has provided novel evidence that– higher non- operating working capital increased firm performance.

scholarly journals Pengaruh Corporate Governance Terhadap Kinerja Perusahaan yang Terdaftar di Bursa Efek Indonesia Tahun 2014 - 2017 (Studi pada Perusahaan yang Memperoleh CGPI Tahun 2014 – 2017)

2019 ◽  
Vol 3 (1) ◽  
pp. 10
Author(s):  
Eva Setiarini Damanik ◽  
Yulia Istia Ningsih
Keyword(s):  
Corporate Governance ◽  
Sampling Method ◽  
Positive Impact ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Return On Equity ◽  
Good Corporate Governance ◽  
Independent Variable

The objectives of this study is to find out the influence of good  corporate governance (GCG) towards the corporate performance. Independent variable in  this research is good  corporate governance.  This variable is measured with an instrument developed by  IICG in the form of corporate governance perception index (CGPI). CGPI contains the score of the survey’s result related to the application of corporate governance by the Companies throughout Indonesia. Meanwhile the dependent Variable of this research is the Performance of the Company on their finances measured with “return on equity and Tobin’s Q. The Sample of this study is company which is registered in Indonesian Stock Exchange and joined CGPI Programs in 2014, 2015, 2016 and 2017 taken by using purposive sampling method. This study used simple linear regression analysis method. The result of this study : (1) Corporate governance has a positive impact on ROE (2) Corporate governance has not an impact on Tobin’s Q

scholarly journals Working capital management and corporate profitability of listed companies in South Africa

2010 ◽  
Vol 8 (1) ◽  
pp. 526-534 ◽  
Author(s):  
Sam Ngwenya
Keyword(s):  
Significant Relationship ◽  
Stock Exchange ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Trade Cycle ◽  
Cash Conversion Cycle ◽  
Johannesburg Stock Exchange ◽  
Operating Profit ◽  
Accounts Payable

Working capital management plays a significant role in creating value for shareholders. The objective of this study was to investigate the relationship between working capital management and profitability of companies listed on the Johannesburg Stock Exchange for the period 1998 to 2008. The results revealed a statistically negative significant relationship between profitability (as measured through gross operating profit), the cash conversion cycle, the net trade cycle and number of days accounts receivable. The results further revealed a positive significant relationship between the number of days accounts payable, the number of days inventory and gross operating profit. The results suggest that managers can increase their companies’ profitability by effectively managing the cash conversion cycle and/or the net trade cycle.

scholarly journals Do Gender and Education Matter for Company Financial Performance? Evidence from Indonesian Companies

2021 ◽  
Vol 9 (1) ◽  
pp. 14
Author(s):  
Adam Zakaria ◽  
Suherman Suherman ◽  
Agung Dharmawan Buchdadi ◽  
Sukma Andika Rahmayanti ◽  
Muhammad Edo Suryawan Siregar
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Random Effect ◽  
Gender Diversity ◽  
Random Effect Model ◽  
Further Education ◽  
Company Performance ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Return On Equity

This research is aimed to investigate the influence of gender diversity and educational level in board of commissioner on the performance of non-financial company listed in Indonesia Stock Exchange for 2013-2017 period. Gender diversity as the first research variable was measured by female existence as the head of commissioner, female existence on board of commissioner and its proportion. Meanwhile, education level of female in board of commissioner as the second variable was measured with dummy 1 for master and doctoral graduate and 0 for other levels. Next, the company performance variable is proxied with a return on assets (ROA), return on equity (ROE), and Tobin’s Q. The model employed in this research was an unbalanced data panel using fixed and random effect model approach. The results show that gender diversity has a significant impact on ROA, but an insignificant impact on ROE and Tobin’s Q. Further, education does not have a significant impact on financial performance. In general, board characteristics do not have an important role in determining financial performance.

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.

scholarly journals THE EFFECT OF CORPORATE GOVERNANCE, COMPANY MEASURE, AND CAPITAL STRUCTURE OF PROFITABILITY AND THE VALUE OF THE FIRM IN TEXTILE AND GARMENT INDUSTRY WAS LISTED IN INDONESIA STOCK EXCHANGE

1970 ◽  
Vol 5 (2) ◽  
pp. 153-164
Author(s):  
Perduti Lestari Rulimo ◽  
Syamsu Alam ◽  
Erlina Pakki
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Sampling Method ◽  
Stock Exchange ◽  
Garment Industry ◽  
Company Size ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Return On Equity ◽  
Equity Ratio

This research aims to find out the effect of corporate governance, company size and capital structure on profitability and firm value in textile and garment industry companies listed on the Indonesia Stock Exchange. Corporate governance variables are measured by independent commissioners. Company size variable is measured by SIZE. Capital structure variables are measured by Debt to Equity Ratio (DER). The profitability variable is measured by Return on Equity (ROE). The population in this research is the textile and garment industry sub-sector manufacturing companies listed on the IDX. The sampling method used was purposive sampling method. Data sources are secondary data collected by documentation techniques. This study uses descriptive statistics and inferential statistics with a quantitative approach and uses panel data regression techniques assisted by the Eviews version 9 program. The results showed that first, the independent commissioner had a positive and not significant effect on Return on Equity. Second, SIZE has a negative and not significant effect on Return on Equity. Third, Debt to Equity Ratio has a positive and significant effect on Return on Equity. Fourth, independent commissioners have a positive and significant effect on tobin’s Q. fifth, SIZE has a positive and significant effect on tobin’s Q. sixth, Debt to Equity Ratio has a negative and significant effect on tobin's Q. seventh, independent commissioners have no effect on tobin’s Q through Return on Equity. eighth, SIZE has no effect on tobin’s Q through Return on Equity. ninth, Debt to Equity Ratio affects tobin's Q through Return on Equity and Tenth, profitability has a positive and significant effect on tobin’s Q

scholarly journals Return On Equity Terhadap Kinerja Perbankan Dan Nilai Emas Sebagai Variabel Moderasi

2019 ◽  
Vol 26 (02) ◽  
pp. 190
Author(s):  
Edi Winarto ◽  
Suryadi .
Keyword(s):  
Banking Sector ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Company Performance ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Return On Equity ◽  
Significant Negative Effect ◽  
Negative Effect ◽  
Indirect Relationship

This study purposes to determine the effect of Return on Equity on banking performance assessed by Tobin's Q through the value of gold, whether direct or indirect influence. This type of research is an explanatory research with a quantitative approach. The population used in this study were 40 banking sector companies listed on the Indonesia Stock Exchange from 2013 to 2018. The sampling technique used purposive sampling so that the chosen sample was 29. This study used descriptive statistical data analysis and part analysis. The results show that ROE is not a significant negative effect while Gold on Q is a significant negative effect, the indirect coefficient is 0.02139 and the Total Effect is -0.02261, it means that the actual relationship is an indirect relationship better affecting Tobin's Q (Banking Performance ) which also means that indirectly the gold value variable can drive influence on Company Performance.

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