scholarly journals DETERMINANTS OF WORKING CAPITAL “EVIDENCE FROM PRODUCTION AND SERVICE SECTOR OF PAKISTAN”

2020 ◽  
Vol 5 (1) ◽  
pp. 67
Author(s):  
Fazal Safia
Keyword(s):  
Firm Size ◽  
Service Sector ◽  
Developed Countries ◽  
Unique Contribution ◽  
Sales Growth ◽  
Working Capital ◽  
Return On Assets ◽  
Production Sector ◽  
Return On Equity ◽  
Total Observation

Purpose: Basic purpose of this study is to explore the factors or determinants of working capital. The effect of this research is threefold as its first aim is to explore the determinants of working capital in the service sector, second is to find the determinant of working capital in the production sector and third is to make a comparison between the findings of both sectors. Research Methodology: Quantitative technique of data collection has been used under explanatory research method and working capital has been taken as dependent variable while return on assets, return on equity, leverage, sales growth, firm size of total assets and firm size of total sales have been taken as independent variables from production and services sector of Pakistan. A sample of 34 companies listed at KSE for 5 years (2007-2011) has been selected with a total observation of 170. Datawerecollectedfrombalancesheetsofthese companies fromofficialsiteofStateBankof Pakistan. Findings: The finding of this research shows that the same selected variables are not a significant predictor of working capital in both sectors. In the service sector, all selected variables are significant predictor or working capital except for short term debt to total assets variable. However, in the production sector, only sales growth and return on assets is a significant predictor of working capital requirement. Unique contribution to theory, practice and policy: In a developing country like in Pakistan, very little work has been done on working capital determinants. In developed countries and other developing countries, enough work has been done in that area, however, not previously study covers the comparison of the diverse sectors to determine working capital. This study will add a new dimension to the existing literature and cover the gaps in existing literature byaddingthe comparisonofdiverse nature sectors into the existing literature.

scholarly journals Pengaruh Capital TurnOver, Return on Equity, dan Firm Size terhadap Price Book Value

2019 ◽  
Vol 2 (2) ◽  
pp. 52-70
Author(s):  
Aemelia Angesti ◽  
Fernaldy Fernaldy ◽  
Maisarah Maisarah ◽  
Erica Erica ◽  
Desy Anwar ◽  
...  
Keyword(s):  
Firm Size ◽  
Sampling Method ◽  
Activity Ratio ◽  
Stock Exchange ◽  
Secondary Data ◽  
Manufacturing Companies ◽  
Working Capital ◽  
Return On Equity ◽  
Book Value ◽  
Data Validity

This study’s main objective is to examine the effect of working capital turnover, return on equity, and firm size toward price book value in the manufacturing companies listed on the Indonesian Stock Exchange in 2013-2016. Working capital turnover is the proxy chosen from activity ratio. Return on equity is the proxy chosen from probability ratio. Firm size is based on total assets, with the nominal itself is in natural logarithms. Sample of research was determined by purposive sampling method to obtain 58 manufacturing companies listed on the Indonesia Stock Exchange (BEI) in the years 2013-2016. This study uses secondary data. Validity test of this study is done with multiple regression analysis and classic assumption test. The results of this study indicates that there is significant influence between the variables Working Capital Turnover, Return on Equity, and Firm Size toward Price Book Value.

scholarly journals Determinants of Firm Capital Structure: Empirical Evidence From Vietnam

2020 ◽  
Vol 11 (4) ◽  
pp. 10
Author(s):  
Hieu Thanh Nguyen ◽  
Anh Huu Nguyen
Keyword(s):  
Capital Structure ◽  
Method Of Moments ◽  
Firm Size ◽  
Generalized Method Of Moments ◽  
Return On Assets ◽  
Return On Equity ◽  
Factors Affecting ◽  
Tangible Assets ◽  
Negative Effect ◽  
Positive Effect

The paper aims to investigate the factors affecting firm capital structure in the context of Vietnam. The research sample includes 290 non-financial listed companies on Vietnamese stock market. This study applied Generalized Method of Moments (GMM) to explain the research results. The paper investigates six factors influencing on firm capital structure including return on assets (ROA), return on equity (ROE), firm size, tangible assets, risks, and growth. The empirical results show that return on assets, tangible assets, risks, and growth have a statistically significant positive effect on the firm capital structure while return on equity has a statistically significant negative effect on the firm capital structure. In addition, when dividing companies into sectors, the study realized that determinants of capital structure in some sectors are consistent with results for entire sample. Finally, firm size has the same impact on capital structure in oil & gas companies and material companies whereas it is not statistically significant for other companies. These evidences provide a new insight to managers on how to determine the reasonable capital structure.

scholarly journals PENGARUH KOMPREHENSIF ATAS STRATEGI MODAL KERJA MELALUI RASIO PERDAGANGAN (Merchandising Ratio)

2017 ◽  
Vol 1 (1) ◽  
pp. 35
Author(s):  
Wenty , ◽  
Murtanto ,
Keyword(s):  
Inventory Management ◽  
Descriptive Analysis ◽  
Financial Statement ◽  
Sales Growth ◽  
Analysis Method ◽  
Working Capital ◽  
Return On Assets ◽  
Cash Conversion Cycle ◽  
Correlation Analysis Method

<p class="Style4">The implementation of working capital strategy of successful compa­nies could be observed from its cash conversion cycle. Effective working capi­tal strategy will lead to an increasing to an increase of a firm's value. This thesis has two objectives : Firstly, it analyse the interrelationships between the merchandising ratio with the return on assets ratio and the long-term debt to total assets ratio. These two ratios have the ability to check the effectiveness of a firm's working capital management. Secondly, it analyse the effective of the firm's management of cash, receivable, inventory and payables.</p><p class="Style4">The writer is using the descriptive analysis method which describe the retail firm's working capital strategy from the financial statement information, and the correlation analysis method that detects the correlation between the merchandising ratio and the traditional ratio.</p><p>The analysis shows that PT Hero Supermarket, PT Matahari Putra Prima and PT Ma Retailindo have good and <em>effective </em>working capital strategy. The merchandising ratio has positive correlation with the return on assets ratio and negative correlation with the debt to total assets ratio.</p><p class="Style1">The purpose of this research is to prove the effectiveness in using the cash conversion cycle strategy. PT Hero Supermarket, PT Matahari Putra Prima and PT Alfa Retailindo should emphasize on their inventory management so that the percentage of sales growth is accompled by an equivalent increase in its inventory. Apart from that, these compa Iles should focus on their payables management by maximize the debt benefit.</p><p class="Style1">Crucial terms: working capital strategy, merchandising ratio and cash conversion cycle.</p>

scholarly journals An Interaction between Firm Strategy, Capital Structure and Firm’s Performance

2015 ◽  
Vol 7 (4(J)) ◽  
pp. 37-47
Author(s):  
Suresh Ramakrishnan ◽  
Saqib Muneer . ◽  
Melati Ahmad Anuar .
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Cash Flow ◽  
Significant Relationship ◽  
Corporate Strategy ◽  
Firm Strategy ◽  
Free Cash Flow ◽  
Sales Growth ◽  
Return On Assets ◽  
Return On Equity

The study tries to determine the association among corporate strategy, social structure and firm performance. In this regard, the monetary reports of 78 companies listed in Karachi Stock Exchange since 2007 to 2014 were scrutinized. In this research, firm strategy (sales growth, liquidity) and capital structure (debt ratio) were used as sovereign variables, and firm performance (return on equity, return on assets, free cash flow for the firm, free cash flow per share) were functional and are used as dependent variables, so to study the affiliation between corporate strategy, capital structure and firm performance within a 8-years period from 2007 to 2014. Secondary data has been used to test the hypotheses; single variable linear regression method was used and their significance was evaluated using Statistics T (t-test) and F (Fisher). The study results indicate that there is a significant positive relationship between sales growth variables and two types (among four types) of performance criteria in the study, namely return on equity and return on assets. And there is a positive significant relationship between firm liquidity and three criteria of firm's performance in the study namely return on equity, free cash flow per share and return on assets. Also, debt ratio has a positive significant relationship with free cash flow for firm and a negative significant relationship with return on assets.

scholarly journals Analisis Faktor yang Mempengaruhi Struktur Modal pada Perusahaan Makanan dan Minuman yang Terdaftar di Bursa Efek Indonesia Periode 2013-2017

2020 ◽  
Vol 4 (1) ◽  
pp. 24
Author(s):  
Mariska Leviani Dan Indra Widjaja
Keyword(s):  
Capital Structure ◽  
Firm Size ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Sales Growth ◽  
Manufacturing Companies ◽  
Return On Assets ◽  
Food And Beverage ◽  
Negative Effect ◽  
Equity Ratio

This research aimed to examine the effect of Liquidity (Current Ratio), Profitability (Return On Assets), Sales Growth, and Firm Size toward Capital Structure (Debt to Equity Ratio) on manufacturing companies sector food and beverages in Indonesia Stock Exchange for period 2013 - 2017. The sampling technique used was purposive sampling and the sample collected consisted of 14 companies. Analysis using SPSS program. Based on statistical t test, the result of research show that Liquidity had a significant, negative effect on Capital Structure. Meanwhile, Profitability, Sales Growth, and Firm Size did not affect Capital Structure. Based on statistical F test indicates that variables Liquidity, Profitability, Sales Growth, and Firm Size simultantly affect Capital Structure on manufacturing companies sector food and beverage listed in Indonesia Stock Exchange for period 2013 - 2017.

Cooperation as a vehicle for innovation: a study of the effects of firm size and industry type

2019 ◽  
Vol 23 (3) ◽  
pp. 329-347 ◽  
Author(s):  
Silveli Cristo-Andrade ◽  
Mário José Franco
Keyword(s):  
Firm Size ◽  
Professional Training ◽  
Service Sector ◽  
Technical Assistance ◽  
Manufacturing Sector ◽  
Emerging Market ◽  
Business Groups ◽  
Binary Logistic Regression ◽  
Developed Countries ◽  
Content Type

Purpose Based on firms’ need to remain competitive and dynamic in a scenario of constant change, the purpose of this paper is to compare the actors involved in cooperation for innovation between Brazilian small- and medium-sized enterprises (SMEs) and large firms (LFs), and also in two industries/sectors, manufacturing and services. Design/methodology/approach To achieve this objective, the database chosen was PINTEC, with data available from 1998 to 2014. The statistical analyses performed were binary logistic regression, descriptive statistics of the variables, correlation matrix and the difference of means. Findings The empirical evidence show that the firm’s characteristics (SME or LF) favour the use of one type of cooperation for innovation or another, highlighting SMEs’ proximity to their clients and LFs’ structures, tending to belong to business groups and having links to training centres and technical assistance networks. Research limitations/implications The theoretical contribution of this study lies in the evidence that types of cooperation for innovation can vary according to firm size and the type of industry/sector, and the practical contribution lies in pointing out the importance of clients for SMEs, and for LFs the importance of business groups, technical assistance and professional training centres. The importance of suppliers in cooperation for innovation stands out in the service sector, and that of clients in the manufacturing sector. Originality/value This study shows that the types of cooperation to innovation can vary according to firm size and type of sector, in an emerging market and with low rates of innovation. It is emphasized that most research on the subject has been carried out in developed countries or emerging Asian ones. Therefore, this study is innovative because it shows particularities of the Brazilian market that can subsequently be observed in other emerging markets.

Role of ICT in Development Process

2011 ◽  
pp. 240-258 ◽  
Author(s):  
Dilip Dutta
Keyword(s):  
Developing Countries ◽  
Socioeconomic Development ◽  
Service Sector ◽  
Empirical Studies ◽  
Developed Countries ◽  
Production Sector ◽  
Success Stories ◽  
Software Production ◽  
Economic Strategies ◽  
The Developed Countries

Empirical studies that focus on impact of ICT for development usually make a distinction between ICT as a production sector and ICT as an enabler of socioeconomic development. Although the developed countries are reaping very high benefits from the ICT, its diffusion in developing countries has been limited. It is often argued that for developing countries benefits from ICTs are more likely to accrue from consumption rather than production. In the context of the selected five South Asian countries, the ICT penetration is relatively very low, although there have been some success stories in software production sector and IT-enabled service sector in the region. Generally speaking, the author argues that the developing countries need to integrate ICT policies more closely into economic strategies, which can be done by strengthening the links between development and technology agencies via the organizational structure of policy-making bodies.

ANALISIS LAPORAN KEUANGAN SEBAGAI ALAT UNTUK MENGUKUR PENGARUH KEMAMPULABAAN TERHADAP PERTUMBUHAN PENJUALAN (Studi Kasus pada PT. Tjiwi Kimia dan PT. Indah Kiat Pulp & Paper Tbk.)

2019 ◽  
Vol 7 (02) ◽  
pp. 109
Author(s):  
Rizki Ahmad Fauzi
Keyword(s):  
Growth Rate ◽  
Strong Relationship ◽  
Profit Margin ◽  
Positive Trend ◽  
Sales Growth ◽  
Return On Assets ◽  
Growth Ratio ◽  
Return On Equity ◽  
Operating Profit ◽  
Pulp Paper

     Profitability is the ability to create profit in the company, the prifitability can kniw by anayzing elements such as analysis the Operating Profit Margin (OPM), Return On Assets (ROA) and Return On Equity (ROE). Sales growth is a trend or movement from the company activities from sale of each period. The purpose of this research is to determine: 1. To determine the influence sales growth through rasio analysis? 2. To determine a company’s financial condition through ratio analysis? 3. To determine the relationship between the ratio of sales growth and profitability ratio?      Research conduction from 2003 to 2007, by taking sampled of two paper companies, namely : PT. Tjiwi Kimia Tbk, and PT. Indah Kiat Pulp & Paper Tbk    Based on the results of data processing, it can be concluded that the  PT. Tjiwi Kimia Tbk., in terms of sales growh ratio,PT. Tjiwi Kimia for 2003 to 2007 produced a positive trend ratio is an average of 8,42 percent. The profitability level of of PT. Tjiwi Kimia Tbk, for the year 2003 to 2007, which is seen from the company’s ability to produce the OPM (Operating Profit Margin) increased overall trend, an average of 17,9 percent, while the terms of return on equity fierm are able produces an average of 3,4 percent, and the ability in terms of return on assets decreased tendency of companies an average of 0,5 percent.Based  on the correlation of the PT. Tjiwi kimia Tbk has a relationship to the operating profit margin (OPM) of 0,495 percent (positive, do not approach 1). This means that that the growth rate has a weak relationship to the operating profit marginWhile in PT. Indah Kiat Pulp & Paper Tbk, in terms of sales growth rate average of 8.94 percent, the level of profitability from 2003 to 2007, namely in terms of OPM (Operating Profit Margin) increased the overall trend is an average of 16 , 24 per cent, while for the ability in terms of ROE in the year is between 2003 to 2007 the overall trend of declining average of 0.61 percent, and for the profitability of companies in terms of ROA is also experiencing a declining trend that is an average of 1, 87 per cent. sales growth rate relationship with the operatingprofit margin (OPM) has a correlation of 0.637 percent (positive, approaching 1). This means that the growth rate has a strong relationship with the Operating Profit Margin    The result ot the evalution in the study states that overall PT. Tjiwi Kimia Tbk hal a level of profitability that is better than PT. Indah Kiat Pulp & Paper Tbk, although the company has lost  sales growth ratio of PT. Indah KiatKeyword: the ratio of sales growth, profitability 

scholarly journals FACTOR THAT AFFECTING DEBT TO EQUITY RATIO IN THE INDONESIA’S TOURISM INDUSTRY SECTOR

SIMAK ◽  
2021 ◽  
Vol 19 (02) ◽  
pp. 312-327
Author(s):  
Tan Natasya Yona Calista ◽  
Purwanto Purwanto
Keyword(s):  
Linear Regression ◽  
Firm Size ◽  
Tourism Industry ◽  
Hypotheses Testing ◽  
Working Capital ◽  
Return On Assets ◽  
Current Ratio ◽  
Independent Variables ◽  
Industry Sector ◽  
Equity Ratio

The research aim is to examine the influence of working capital turnover, current ratio, cash ratio, firm size and return on assets toward debt to equity ration in the tourism industry sector listed on the Indonesia Stock Exchange. This is a quantitative research which takes data from the company’s audited financial statement. There are five independent variables which are being examined by descriptive statistical analysis, classical assumption tests, multiple linear regression, and hypotheses testing. The population of this research is tourism companies and stores 10 samples of companies fulfilled certain criteria in the period of 2012-2018 annually. The technique used for multiple linear regression panel data is the random effect model. The outcomes reveal a value of adjusted R-squared towards dependent variable is 33.22% and the independent variables of working capital turnover, current ratio, firm size and return on assets have a significant influence on debt to equity ratio in hypotheses testing. The most significant independent variable influences debt to equity ratio in the tourism industry sector in Indonesia is working capital turnover. High working capital turnover indicates this shortage of working capital which may be due to high inventory turnover, accounts receivable or cash balances that are too small.

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