scholarly journals EFFECTS OF WORKING CAPITAL CYCLE ON PROFITABILITY OF MANUFACTURING FIRMS IN GHANA

2017 ◽  
Vol 1 (3) ◽  
pp. 95
Author(s):  
Alfonse Editor Kisilu
Keyword(s):  
Research Design ◽  
Small Firms ◽  
Management Practice ◽  
Negative Relationship ◽  
Secondary Data ◽  
Manufacturing Firms ◽  
Sampling Frame ◽  
Working Capital ◽  
Beta Coefficient ◽  
The Government

Purpose: The study was on the effects of working capital cycle on profitability of manufacturing firms in Ghana.Methodology: The research design used in this study was explanatory research design. There are 78 large manufacturing firms in Loan Book of Barclays Bank Ghana.  The population of the study is therefore 78 firms.  The sampling frame was the loan book of Barclays Bank Ghana.  It is for this reason that the study considered 50% of the population to be the sample size. This yielded 39 large manufacturing firms.  The study used secondary data only for the purposes of analysis and drawing of conclusions. Descriptive statistics included mean scores and inferential statistics included regression modeling.Results: Results show that there is a negative relationship between profit before tax and mean debtor’s collection period whose beta coefficients is -1817.81. Results show that there is a negative relationship between profit before tax and mean inventory conversion period whose beta coefficients is -103.762. The mean payable deferral period had a positive relationship with profitability with a beta coefficient of 1097.073. The findings show that there is a negative relationship between profit before tax and working capital conversion cycle with a beta coefficient of -816.198.Policy recommendation: It was recommended that speeding up payments to suppliers might increase profitability because firms often receive a substantial discount for prompt payment.It was also recommended that the government should intervene by way of a legislation that would impose penalty interest for delayed payment of commercial debts. Such a provision would create a level playing field by binding all firms to pay promptly and ease the cash flow problems of small firms, who will be compensated for any overdue payments. It was recommended that the owners of firms be made more aware and trained on the best credit management practice. That way, they could reduce the amount of overdue debt and alleviate the problem.

scholarly journals Effects of Working Capital Management on Firm’s Profitability: A Study on the Firms Listed Under DSE in Bangladesh

2020 ◽  
pp. 130-138
Author(s):  
Md. Shakhaowat Hossin ◽  
Sohana Begum
Keyword(s):  
Financial Performance ◽  
Asset Allocation ◽  
Management Practice ◽  
Negative Relationship ◽  
Secondary Data ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Conversion Period ◽  
Inventory Turnover

This paper investigates the relationship between working capital management and financial performance of Pharmaceuticals and Textile firms listed at the Dhaka Securities Exchange in Bangladesh. The data analysis was carried on ten Pharmaceuticals and Textile firms for a period of 2013 to 2017. Secondary Data was analyzed by applying Descriptive Statistics, Regression and Correlation analysis to findthe relationship of current ratio, inventory conversion period and average payment period with Return on Asset. The findings indicate that the Pharmaceuticals and Textile firms’ performance is influenced by the variables relating to working capital. There is a positive relationship between profitability and current ratioand Inventory Turnover period shows a negative relationship with profitability but Average payment period shows insignificant impact on profitability. The study concludes that there exists a relationship between working capital managementand financial performance of Pharmaceuticals and Textile firms in Bangladesh. The study recommends that for the Pharmaceuticals and Textile firms to remain profitable, they should employ working capital management practice that will help in making decisions about investment mix and policy, matching investment to objective, asset allocation for institution and balancing risk against profitability.

scholarly journals EFFECT OF VAT INCENTIVES ON THE PERFORMANCE OF EPZ FIRMS IN KENYA

2018 ◽  
Vol 3 (1) ◽  
pp. 31
Author(s):  
Dr. John Kuria
Keyword(s):  
Length Of Stay ◽  
Sample Size ◽  
Research Design ◽  
Significant Relationship ◽  
Secondary Data ◽  
Tax Incentives ◽  
Primary Data ◽  
Inferential Statistics ◽  
Significance Level ◽  
The Government

Purpose: The purpose of this study was to determine the effect of VAT Incentive on the performance of EPZ firms in Kenya.Methodology: This research used correlation research design. Sample size of all the 86 registered EPZs firms was used in this study. Primary data was obtained using questionnaires. Secondary data from the registered firms was collected on; ROA, number and value of jobs and the length of stay of the firms. The study used both descriptive and inferential statistics to conduct data analysis.Results: The results of study revealed that at 5% significance level, VAT incentives had a positive and significant relationship with performance of EPZ firms measured using ROA. The results further revealed that at 5% significance level, VAT incentives were found to have positive and significant relationship with performance of EPZ firms measured using the number of total jobs created in Kenya. The results also revealed that at 5% significance level, VAT incentives were found to have positive and significant relationship with performance of EPZ firms measured using the number of years in operationUnique contribution to theory, practice and policy Based on the study findings, it was recommended that the government should reconsider its VAT policy by encouraging more VAT rebates to firms in order to boost their productivity and increase the volume of exports. The study also recommends that the government should introduce a strong monitoring unit to oversee the administration of tax incentives. Government should equally pay attention to the issue of security and infrastructure which are basic in order to maximize the benefits of tax incentives.

scholarly journals Impact of Covid-19 on Cooperatives Movement in Rwanda

2020 ◽  
pp. 1-5
Author(s):  
Jean Bosco Harelimana ◽  
◽  
Pacifique Mugwaneza ◽  
Nteze Claude Musabwa ◽  
◽  
...  
Keyword(s):  
Bargaining Power ◽  
Economies Of Scale ◽  
Secondary Data ◽  
New Product ◽  
Economic Transformation ◽  
Descriptive Statistics ◽  
Prevention Measures ◽  
Working Capital ◽  
Reduced Costs ◽  
The Government

Cooperatives play important role in promoting inclusive, sustainable development and economic transformation. Cooperatives can offer significant benefits to their members through the principle of strength in numbers and pooled resources, including increased bargaining power; reduced costs through economies of scale; the ability to obtain goods or services they otherwise would not have access to; the ability to diversify and expand production into new product ranges; the ability to improve product quality through collective investment; and overall increased incomes in accordance with cooperative values and principles. The world now encounters a grim reality, with exponential growth of contagion of COVID-19 pandemic, human lives are being lost and the virus continues to spread rapidly across the globe. Different prevention measures including the confinement were enacted by the government. Cooperatives operations were suspected due to the confinement. This paper examines the impacts of COVID-19 pandemic on cooperatives in Rwanda using descriptive statistics from primary and secondary data collected which helped to draw conclusions on the effect of the pandemic. The results highlight the impacts till now of the pandemic on cooperative formation, income losses for both members and cooperatives, effects on working capital and investment, and key facts on cooperative contributions to support their members.

scholarly journals The Effect of Working Capital Management on Corporate Profitability: Evidence from Nigerian Food Product Firms

2015 ◽  
Vol 1 (2) ◽  
pp. 55 ◽  
Author(s):  
Sabo Muhammad ◽  
Rabi’U Saminu Jibril ◽  
Usman Sani K. Wambai ◽  
Fatima Bello Ibrahim ◽  
Tjjani Habibu Ahmad
Keyword(s):  
Stock Exchange ◽  
Negative Relationship ◽  
Secondary Data ◽  
Food Product ◽  
Annual Reports ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Short Term Investment ◽  
The Impact

The paper examines the impact of working capital management on corporate profitability through the periods of 2008 to 2012. The total of seven firms listed on the floor of the Nigerian Stock Exchange was studied, using secondary data generated from annual reports and accounts of the sampled companies and the Nigerian Stock Exchange Fact book. The data were analyzed by means of descriptive statistics and GLS regression analysis using STATA 11. The study finds a positive relationship among Average Collection Period (ACP), Current Ratio (CR) and the size of the firm (LOGSIZE) with Profitability and a negative relationship with Inventory Turnover Period (ITP), Average Payment Period (APP). The paper therefore recommends that cash collected should be re-invested into short-term investment to generate profits and fund left idle in the cash or excessive liquidity is costly and do not lead to profitability.

scholarly journals FINANCIAL DISTRESS DI BUMN INDONESIA DAN FAKTOR-FAKTOR YANG MEMPENGARUHI INVESTASI, LEVERAGE DAN CASH FLOW OPERATION TERHADAP FINANCIAL DISTRESS PADA PERUSAHAAN BUMN

2020 ◽  
Vol 3 (2) ◽  
pp. 226-243
Author(s):  
Aries Widya Gunawan ◽  
Aminullah Assagaf ◽  
Nur Sayidah ◽  
Alvy Mulyaningtyas
Keyword(s):  
Cash Flow ◽  
Financial Distress ◽  
Capital Investment ◽  
Control Variable ◽  
Secondary Data ◽  
Managerial Compensation ◽  
Financial Indicators ◽  
Working Capital ◽  
The Government ◽  
Investment Growth

This study aims to analyze the effect of managerial compensation, working capital, investment growth, and cash flow operations on financial distress in state-owned companies. This study uses several independent variables that empirically affect operating cash flow that has an impact on SOE financial distress. This study also uses financial indicators as control variables to limit the influence of factors or other variables outside the independent variable. The control variable used in this study is leverage. The researcher selected secondary data from 2014-2017 from a sample of 19 State-owned enterprises that received subsidies or equity participation from the government. The analytical method used is a statistical approach through the classical assumption test and linear regression model. The results of this study indicate that Working Capital and leverage have an influence on Financial Distress. Management Compensation, Investment Growth, and Cash Flow Operations have no influence on Financial Distress.  

Working capital management and firm performance in China

2019 ◽  
Vol 27 (4) ◽  
pp. 546-562 ◽  
Author(s):  
Ting Ren ◽  
Nan Liu ◽  
Hongyan Yang ◽  
Youzhi Xiao ◽  
Yijun Hu
Keyword(s):  
Firm Performance ◽  
Negative Relationship ◽  
Manufacturing Firms ◽  
Chinese Economy ◽  
Chinese Government ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Content Type ◽  
Ownership Structures

Purpose The purpose of this paper is to examine the relationship between working capital management (WCM) and firm performance in the context of the Chinese economy. Specifically, it investigates the effects of ownership structures as an internal factor and of institutional environments (IE) as an external factor shaping this relationship. Design/methodology/approach The study applies two-way fixed effect regression models to a sample of Chinese listed manufacturing firms for the period of 2010 to 2017. WCM is measured by cash conversion cycles (CCC); profitability is measured by core profit ratios; ownership structures are classified based on state-owned enterprises (SOEs) and non-SOEs; and IEs are measured from dimensions of factor markets (FM) and legal systems (LS). Findings First, the results show a negative relationship between CCC and firm performance. Second, the negative relationship between CCC and profitability is significant for non-SOEs but not for SOEs. Third, both the FM and LS strengthen the negative association between CCC and profitability. Fourth, the moderating effect of FMs and LSs is evident for non-SOEs only. The results hold when using alternative measures of WCM and profitability and while controlling for additional variables. Originality/value The current study shows that while WCM has a significant effect on the profitability of Chinese firms, such an effect greatly depends on the ownership structures and IE involved. The results thus offer important implications in helping the Chinese government create better IEs and in allowing manufacturing firms to improve upon their WCM practices.

scholarly journals ANALISIS SUKU BUNGA, INFLASI DAN KREDIT MACET MODAL KERJA DI INDONESIA

2019 ◽  
Vol 1 (2) ◽  
pp. 409
Author(s):  
Poeja Maura ◽  
Yeniwati Yeniwati
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Significant Relationship ◽  
Financial Services ◽  
Negative Relationship ◽  
Secondary Data ◽  
Coefficient Of Determination ◽  
Linear Regression Models ◽  
Working Capital ◽  
Library Studies

This study aims to determine the effect of reference interest rates on inflation and bad credit working capital and also see how the effect of inflation on bad credit working capital in Indonesia. The type of research used is descriptive and associative research, namely research that describes the research variable and finds the presence or absence of influence between the independent variable and the dependent variable. The type of data in this study are quantitative secondary data and time series from 2016M6-2018M11 with documentation data collection techniques sourced from Bank Indonesia (BI), Financial Services Authority (OJK), Central Statistics Agency (BPS), and other library studies . Data were analyzed using multiple linear regression models with steps: (1) classical assumptions, (2) hypothesis testing, and (3) test coefficient of determination (R2). The results of this study indicate that: (1) The benchmark interest rate has a negative and significant relationship to inflation. (2) The reference interest rate has a positive and significant relationship to non-performing loans of working capital in Indonesia. (3) Inflation has a non-significant and negative relationship to non-performing loans of working capital in Indonesia. This study aims to determine the effect of reference interest rates on inflation and bad credit working capital and also see how the effect of inflation on bad credit working capital in Indonesia. The type of research used is descriptive and associative research, namely research that describes the research variable and finds the presence or absence of influence between the independent variable and the dependent variable. The type of data in this study are quantitative secondary data and time series from 2016M6-2018M11 with documentation data collection techniques sourced from Bank Indonesia (BI), Financial Services Authority (OJK), Central Statistics Agency (BPS), and other library studies . Data were analyzed using multiple linear regression models with steps: (1) classical assumptions, (2) hypothesis testing, and (3) test coefficient of determination (R2). The results of this study indicate that: (1) The benchmark interest rate has a negative and significant relationship to inflation. (2) The reference interest rate has a positive and significant relationship to non-performing loans of working capital in Indonesia. (3) Inflation has a non-significant and negative relationship to non-performing loans of working capital in Indonesia. <w:LsdException Locked="false" Priority="40" Name="Grid

Population Composition and Its Effect on Economic Growth

2021 ◽  
Vol 3 (1) ◽  
pp. 86-100
Author(s):  
Deboshmita Brahma
Keyword(s):  
Economic Growth ◽  
Negative Relationship ◽  
Secondary Data ◽  
Ideal Condition ◽  
Demographic Dividend ◽  
Third Phase ◽  
Significant Negative Relationship ◽  
Working Age ◽  
Per Capita ◽  
The Government

Background: The relationship between population and economic growth has always been a subject of debate. There has never been any clear consensus amongst economists about the nature and extent of influence that population has on the economic growth of a country. Objective: This paper aims to explore the influence exerted by the age structure of the population on the economic growth of a country. Method: The paper uses secondary data to find the relation between Gross Domestic Product (GDP) per capita levels of countries and their respective Age Dependency Ratio.Result: There is a significant negative relationship between them, which implies that, if a country has a rise in a high proportion of the dependent population, per capita income will tend to be lower. Conclusion: The paper then makes a special study of the prospect of demographic dividend in India. The country is in the third phase of demographic transition, implying that the proportion of the working-age population is greater than the dependent population. This provides an ideal condition for the Government to reap the benefits of demographic dividend and achieve higher levels of economic growth.

scholarly journals ANALISIS PENGARUH INFLASI TERHADAP LAJU PERTUMBUHAN EKONOMI DI KOTA JAMBI

2018 ◽  
Vol 2 (1) ◽  
pp. 131
Author(s):  
Prima Audia Daniel
Keyword(s):  
Economic Growth ◽  
Negative Relationship ◽  
Secondary Data ◽  
Qualitative Approaches ◽  
The Government ◽  
Relationship Of ◽  
Analytical Tools ◽  
Instance Variable ◽  
The Relationship ◽  
The City

In an economy of a country or region are certainly not apart from a problem that intertwined and mutually influence each other. These conditions always happen in all countries that there is in the world and not apart of this also on the Government of the city of Jambi. The economy of the city of Jambi who still has not shown the consistency of course is still influenced by other factors are interlinked, for instance variable inflation. Inflation is indeed directly does not affect economic growth however indirectly to provide disruption in spur economic growth. On the basis of things that writers do this research. the purpose of this research is; 1) analyzing the rate of growth of inflation and economic growth that occurred in the city of Jambi; 2) analyse the influence of inflation towards economic growth in the city of Jambi; 3) and see the relationship of inflation with economic growth in the city of Jambi. This research was conducted with the use of quantitative and qualitative approaches and utilizing secondary data becomes available. analytical tools used in this research is a simple linear regression and correlation of person who used to see the influence and relationship variables infalsi against economic growth. From the results of the discussion indicates that the inflassi effect negatively to economic growth and inflation have a negative relationship with economic growth. This means that rising inflation effect on the rate of economic growth in the city of Jambi. Keywords: inflation, economic growth

Sign in / Sign up

Export Citation Format

Share Document