scholarly journals Working Capital Management and Corporate Performance: Evidence from Sri Lankan Listed Manufacturing Firms

2018 ◽  
Vol 7 (2) ◽  
pp. 577 ◽  
Author(s):  
Ratnam Vijayakumaran ◽  
Sunitha Vijayakumaran
Keyword(s):  
Stock Exchange ◽  
Optimal Level ◽  
Sri Lankan ◽  
Firm Characteristics ◽  
Manufacturing Companies ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Firm Profitability ◽  
Performance Effects

Working capital that represents a significant portion of a firm’s total assets affects its profitability and liquidity. This study examines the performance effects of working capital management using a panel of listed manufacturing companies on the Colombo Stock Exchange (CSE) over the period 2011 to 2016. Controlling for unobservable firm specific heterogeneity and a set of observable firm characteristics, we document that working capital is non-linearly (inverted U-shaped) related to firm profitability. This indicates the existence of an optimal level of working capital that balances the costs and benefits of maintaining working capital, and maximizes firm’s performance.

scholarly journals An Analysis of Proposed Framework on Impact of Working Capital Management on the Profitability of Selected Manufacturing Companies Listed on the Nigerian Stock Exchange

2012 ◽  
Vol 4 (12) ◽  
pp. 730-736 ◽  
Author(s):  
Yusuf Aminu
Keyword(s):  
Inventory Management ◽  
Business Strategy ◽  
Trade Credit ◽  
Stock Exchange ◽  
Optimal Level ◽  
Manufacturing Companies ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
The Impact

Working capital management encompasses the overall idea of management of current assets and current liabilities of a business. Whether empirical or conceptual, the discussion have delineated working capital management as that part of business strategy which involves effective management of short term or current assets and liabilities to ensure optimal level and maximization of value. This paper aims to provide an analysis on the concept and propose framework that emphasizes on investigating the impact of management of working capital on the profitability of manufacturing companies listed on the Nigerian stock exchange. The paper proposes four dimensions (variables) as cash management levels, inventory management levels, receivable management, and the trade credit (Accounts payable) as measures of working capital management and the profitability of companies.

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 Working capital management and profitability: evidence from Indonesian manufacturing companies

2020 ◽  
Vol 3 (1) ◽  
pp. 36-46
Author(s):  
Irfan Aryawan ◽  
Astiwi Indriani
Keyword(s):  
Stock Exchange ◽  
Manufacturing Companies ◽  
Capital Management ◽  
Working Capital ◽  
Return On Assets ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Conversion Period ◽  
Collection Period ◽  
The Relationship

The aims of this study is to analyze the relationship between working capital management and profitability (return on assets) as a dependent variable and cash conversion cycle (CCC), inventory conversion period (ICP), average collection period (ACP) and average payment period (APP) as independent variables with leverage, liquidity, and size as the controlling variables. The sample of this study are manufacturing companies in the Indonesian Stock Exchange 2013-2017. The analysis using OLS showed that the ACP has a negative and significant effect on ROA and the APP has a positive and significant effect on ROA, meanwhile CCC and ICP has a negative and insignificant effect on ROA.

scholarly journals The Determinant of Working Capital Management of Manufacturing Companies

2017 ◽  
Vol 32 (2) ◽  
pp. 276 ◽  
Author(s):  
Mias Fatimatuzzahra ◽  
Retno Kusumastuti
Keyword(s):  
Cash Flow ◽  
Firm Size ◽  
Firm Growth ◽  
Capital Expenditure ◽  
Stock Exchange ◽  
Manufacturing Companies ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Cash Conversion Cycle

Working capital is directly related to the operations activity of the company to produce goods. To be able to properly manage its working capital, the company must determine what factors that can affect working capital. Actually, there are many factors that affect working capital management but the factors that used in this study are firm size, leverage, firm growth, cash flow, profitability, capital expenditure, and GDP. Meanwhile, working capital management is reflected by the cash conversion cycle. By taking samples at manufacturing companies listed in Indonesia Stock Exchange period of 2010 - 2014, found there are a significant effect of firm size, firm growth, cash flow, profitability, and GDP. This is due to the leverage and capital expenditure shows insignificant effect.

Analysis of Working Capital Management and Cash Holding on Profitability of Manufacturing Companies Listed in Indonesia Stock Exchange Period 2014 – 2018

2020 ◽  
Vol 2 (2) ◽  
pp. 65-71
Author(s):  
Niko Sianipar ◽  
Syamsu Alam ◽  
Mursalim Nohong
Keyword(s):  
Stock Exchange ◽  
Statistical Tests ◽  
The Other ◽  
Cash Holding ◽  
Manufacturing Companies ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Significance Level ◽  
Conversion Period

This research aims to analyze the effect of working capital management on the profitability of manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2014-2018. Working capital management indicators used in this research are the cash conversion cycle (CCC), the inventory conversion period (ICP), the receivable conversion period (RCP), the debt repayment period (PDP), and Cash Holding (CASH). On the other hand, the profitability indicator used in this research is Return On Assets (ROA) The sample data used in this study is taken from the audited financial statements and published on the IDX. According to the sampling technique used in this research, namely purposive sampling, there are 73 companies that fit certain criteria. This research uses descriptive statistics with a quantitative approach and uses time series data regression techniques assisted with the Eviews version 9 program. Hypothesis testing uses F statistical tests, t statistical tests, and coefficient determination with a significance level of 5%. The results of this research indicate the simultaneous independent variable (F-statistic test) affect the profitability (ROA) with a significance level of 0,000. On the other hand, partially (t test statistic) shows CCC and PDP have positive and not significant effect on profitability, ICP has a negative and no significant effect on profitability, RCP has a negative and significant effect on profitability. Meanwhile CASH has a positive and significant effect on profitability.

scholarly journals Does Working Capital Management Affect Profitability of Ghanaian Manufacturing Firms?

2020 ◽  
Vol 23 (1) ◽  
pp. 1-18
Author(s):  
Kwadwo Boateng Prempeh ◽  
Godfred Peprah-Amankona
Keyword(s):  
Developing Economies ◽  
Stock Exchange ◽  
Optimal Level ◽  
Manufacturing Firms ◽  
Management Policy ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Dynamic Panel Regression ◽  
Ghana Stock Exchange

AbstractThis paper analyses the link between working capital management and profitability of firms in the context of developing economies. A balanced panel consisting of eleven (11) manufacturing firms listed on the Ghana Stock Exchange covering the period of 2011-2017 was used. The link between working capital management and profitability was examined using dynamic panel regression (Arellano-Bond Estimation) technique. The study revealed that there is a significant positive linear relationship between working capital management and firms’ profitability. The findings also reveal the existence of a concave quadratic relationship between working capital management and firms’ profitability. There is an optimal level at which working capital management maximises firm’s profitability, therefore, managers need to ensure that they operate within the limits of the optimal level by implementing an effective and efficient working capital management policy. The study concludes that, the practice of an aggressive working capital management policy maximises a firm’s profitability.

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