The Effect of Working Capital Management on Profitability: Evidence from Malaysian Construction Firms
Keyword(s):
Working capital management is an essential part of a sound business. The main objective of this research is to investigate the effect of working capital management on profitability. The regression analysis was carried out on a panel sample of 30 construction firms listed on Bursa Malaysia over a five-year period from 2015 to 2019. The findings suggest that there is a significant positive relationship between Days Inventory Outstanding (DIO) and Gross Operating Profit (GOP) as well as a significant negative relationship between Days Payables Outstanding (DPO) and GOP. Thus, firms can maximise their profitability by maintaining higher inventory level and paying off creditors in a shorter time frame.
2015 ◽
Vol 1
(2)
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pp. 87-98
2014 ◽
Vol 9
(1)
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2014 ◽
Vol 20
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pp. 14-25
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2017 ◽
Vol 12
(8)
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pp. 175
2015 ◽
Vol 1
(1)
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pp. 286
2016 ◽
Vol 4
(12)
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pp. 178-187
2018 ◽
Vol 15
(2)
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pp. 104-115
Keyword(s):