Strategic Data-Based Optimization of Working Capital Management in Medium-Sized Firms

2015 ◽  
pp. 15-50 ◽  
Author(s):  
Milan Branko Vemic
Keyword(s):  
Transition Economy ◽  
Systemic Approach ◽  
Optimal Management ◽  
Capital Management ◽  
Working Capital ◽  
Structured Interviews ◽  
Working Capital Management ◽  
Advanced Economies ◽  
Medium Enterprises

The chapter explores whether and to what extent a systemic approach to optimal management of working capital stemming from database wisdom exists in medium enterprises in Serbia as a transition economy. The chapter portrays the level of optimization of all key components of working capital management and addresses indispensable strategic directions for Serbian entrepreneurs and managers that could have broader application in transition context. Ultimately, the chapter explores how to achieve better and more effective results in the development of medium enterprises by optimizing database wisdom for working capital management. As a research paper, the chapter reviews the experiences from Serbia and compares them with achievements in other transition and more advanced economies. In a case study undertaken in Serbia with semi-structured interviews in medium-sized enterprises, the author examines the specific preconditions for increasing the current perceived inefficient use of working capital and extend for discussion an optimization model based on tested hypotheses.

scholarly journals Management of working capital – the Achilles heel of small and medium enterprises (SMEs). The case of Greece

2018 ◽  
Vol 18 (2) ◽  
pp. 5-18 ◽  
Author(s):  
Alina Hyz ◽  
Dimitrios Stavroulakis ◽  
Petros Kalandonis
Keyword(s):  
Small And Medium Enterprises ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Demand Volatility ◽  
Medium Enterprises ◽  
The Relationship ◽  
Of Greece ◽  
Limit Access ◽  
Future Growth

Working capital represents the amount of funds invested in firms' current assets. Optimizing working capital management is a challenge and a necessity for firms especially today due to the demand volatility and limit access to bank credit. This paper investigates the relationship between working capital management and firms' performance in small and medium enterprises in Greece. The results suggests that an effective working capital management is a necessary component of firm's future growth and profitability. The analysis used data for a sample of 459 small and medium enterprises for the period from 2008 to 2012. The paper is organized as follows: in the next section we briefly present the problem based on literature review. This is followed by the presentation of research methodology and the data sources used in the analysis. The results are presented and discussed in section three. Last section summarizes the conclusions and presents further opportunities for research.

scholarly journals PENGARUH PENGGUNAAN INFORMASI AKUNTANSI DAN MANAJEMEN MODAL KERJA PELAKU UMKM TERHADAP KEBERHASILAN USAHA DENGAN UMUR USAHASEBAGAI VARIABEL PEMODERASI (STUDI KASUS PADA INDUSTRI KREATIF DI YOGYAKARTA)

2020 ◽  
Vol 12 (1) ◽  
pp. 19-32
Author(s):  
Khoirunnisa Cahya Firdarini ◽  
Agung Slamet Prasetyo
Keyword(s):  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Accounting Information ◽  
Total Sample ◽  
Creative Industries ◽  
Business Success ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Medium Enterprises

Small and medium enterprises (SMEs) are one of important sector of national economic that have contributed to labor absorption and Gross Domestic Product (GDP). They could survive of financial crisis both in national and global scale. This  research  examines  the  effect  of  accounting information and working capital management toward business success of small and medium enterprise (SMEs) with age of business as moderating variable. The  population of  this  research  are  small and medium enterprises (SMEs) in creative industries sector operated in Yogyakarta district. They are handycraft, culinary and fashion. Based  on  purposive  sampling  method,  total  sample  of  this  research  is  200 SMEs.  Hypothesis  testing  used  is  path analysis using structural equation modelling (SEM). The test result shows that accounting information and working capital management have  positive  and  significant  effect to the success of SMEs.Age of business as moderating variable also have positive  and  significant  effect to the success of SMEs.

scholarly journals Impact of Working Capital Management on Firm‟s Profitability: A Case Study of Cement Industry of Pakistan

2015 ◽  
Vol 91 (2) ◽  
pp. 86-93 ◽  
Author(s):  
Farrukh Shahzad ◽  
◽  
Zeeshan Fareed ◽  
Bushra Zulfiqar ◽  
◽  
...  
Keyword(s):  
Cement Industry ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management

scholarly journals Working Capital Management Issues in Educational Sector: A Case Study of a Private Campus in Sri Lanka

2021 ◽  
pp. 30-45
Author(s):  
Kaushika Gamage ◽  
Vilani Sachitra
Keyword(s):  
Financial Performance ◽  
Thematic Analysis ◽  
Qualitative Data ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
The Relationship ◽  
Management Issues

Business organizations try to maintain financial sustainability in the long run and ultimately try to maximize shareholders’ wealth. It has been argued that financial constraints in short term are a major barrier to the firms’ long term financial success. Working capital has seen as the basic factor that affect firm’s ability to continue their day-to-day business operations with financial stability. This case study mainly focuses on examining the reasons for working capital management issues faced by the Campus and the relationship between working capital and firm’s financial performance. This study is mainly focusing on working capital problems faced by a private Campus that operates in Sri Lankan educational sector. Required qualitative data gathered through semi-structured face to face interviews with financial experts and the quantitative data gathered using annual financial statements for last six years. Panel data regression was performed to identify the relationship between working capital management and financial performance. Qualitative data was analyzed using content and thematic analysis. Based on the regression results, average collection period, average payment period and cash conversion cycle have significant relationship over return on assets and net profit margin of the Campus. Five major themes were recognized in the thematic analysis which contained distinct subthemes. As the existing research articles lack the working capital management issues faced by the organizations in private education industry, this can be considered as an opportunity to perform an empirical study on working capital management issues faced by a private campus.

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