scholarly journals A panel data analysis of working capital management policies

2009 ◽  
Vol 4 (1) ◽  
pp. 143-158
Author(s):  
Mian Sajid Nazir ◽  
Talat Afza
Keyword(s):  
Data Analysis ◽  
Panel Data ◽  
Panel Data Analysis ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Management Policies

scholarly journals Determinants of Working Capital Management in Latin American Companies

Innovar ◽  
2014 ◽  
Vol 24 (51) ◽  
pp. 5-17 ◽  
Author(s):  
Samuel Mongrut ◽  
Darcy Fuenzalida O’Shee ◽  
Claudio Cubillas Zavaleta ◽  
Johan Cubillas Zavaleta
Keyword(s):  
Data Analysis ◽  
Latin American ◽  
Firm Value ◽  
Panel Data Analysis ◽  
Country Risk ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Unbalanced Panel Data

The aim of this study is to determine the factors that affect working capital management in Latin American companies. Using an unbalanced panel data analysis for companies quoted in five Latin American capital markets it is shown that companies in Argentina, Brazil, Chile and Mexico are holding cash excesses, which could destroy firm value. Results show that the industry cash conversion cycle, the company market power, its future sales and country risk have an influence on the way Latin American companies manage their working capital with significant differences among countries in the region.

scholarly journals The Impact of Working Capital Management on Corporate’s Performance: Evidence from Egypt

2020 ◽  
Vol 15 (6) ◽  
pp. 151
Author(s):  
Yasmeen Tarek ◽  
Mary Rafik
Keyword(s):  
Data Analysis ◽  
Financial Management ◽  
Panel Data Analysis ◽  
Corporate Value ◽  
Capital Management ◽  
Working Capital ◽  
Return On Assets ◽  
Working Capital Management ◽  
Wealth Maximization ◽  
The Impact

Financial management has two main objectives profit and wealth maximization, well organized management of WC components should contribute to the achievement of these objectives. This study clarified the factors which affect WCM, which consequently will affect the business health as a whole and this will influence corporate ’performance and its corporate value. The study will examine the relation between firms profitability and its corporate value by applying panel data analysis on16 companies registered in the Egyptian stock market during the period from 2013 to 2017.The performance of companies is measured through profitability using return on assets (ROA) and firms value were measured by Tobin’s Q (TQ) ratio. The working capital management was measured by using current assets ratio (CAR), quick ratio (QR) and cash ratio (CR).

WORKING CAPITAL MANAGEMENT AND TECHNOLOGY INTENSITY

2021 ◽  
Vol 6 (16) ◽  
pp. 214-229
Author(s):  
Emin AVCI
Keyword(s):  
Emerging Markets ◽  
Emerging Countries ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Management Policies

Several studies in literature presented that technology intensity firms, which are also assumed as R&D intensive ones, are holding more liquid assets, especially cash, compared to other firms. This study investigates possible differences, which are born by tendency of holding more liquid assets in technology intensive firms, in working capital management policies in emerging markets. 437 firms from 15 emerging countries have been analyzed by the use of Kuruskal Wallis and Mann Whitney U tests. The results revealed that technology intensive firms have been following different and more aggressive working capital management policies compared to less technology intensive ones.

scholarly journals Working Capital Management Policies and Returns of Listed Manufacturing Firms in Ghana

2017 ◽  
Vol 64 (2) ◽  
pp. 255-269 ◽  
Author(s):  
Anokye M. Adam ◽  
Edward Quansah ◽  
Seyram Kawor
Keyword(s):  
Stock Exchange ◽  
Manufacturing Firms ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Financing Policies ◽  
Current Asset ◽  
Investment And Financing ◽  
Management Policies ◽  
Ghana Stock Exchange

Abstract This study sought to determine the effects aggressive/conservative current asset investment and financing policies have on firms′ return for six manufacturing firms listed at Ghana Stock Exchange for a period of 2000-2013. Data were obtained from the annual reports of the firms and the Ghana Stock Exchange. The study adopted longitudinal explanatory non-experimental research design applied to dynamic panel ARDL framework in analyzing the data. The results revealed that the current asset investment and financing policies have highly significant positive effects on returns to equity holders in the long-run. The empirical evidence suggests that conservative current asset investment policies increase firms return while conservative financing policies yields negative returns. The study therefore would enable finance managers to be able to fashion out the appropriate working capital management policies. A firm pursuing conservative current asset investment policy should balance it with aggressive current asset financing policy in order to enhance profitability and create value for their investors.

Working capital management and firm’s valuation, profitability and risk

2019 ◽  
Vol 15 (2) ◽  
pp. 191-204 ◽  
Author(s):  
Ben Le
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Emerging Market ◽  
Firm Valuation ◽  
Capital Management ◽  
Working Capital ◽  
Data Set ◽  
Working Capital Management ◽  
Content Type ◽  
The Impact

PurposeThe purpose of this paper is to examine the effects of working capital management on firm valuation, profitability and risk.Design/methodology/approachThe paper uses a panel data set of 497 firms covering the period 2007 to 2016. The authors test the effects of working capital management on firm valuation, profitability and risk using the panel data methodology that includes firm and year fixed effects regressions.FindingsThe authors find a significantly negative relationship between net working capital (NWC) and firm valuation, profitability and risk. The results suggest that, in managing working capital, firm managers must make a trade-off between their objectives for profitability and risk control. Working-capital management is of particular importance in firms with less access to capital; it is also important when firms are expanding their investments during periods of economic recovery.Originality/valueThis paper contributes to the literature in several ways. First, to my knowledge, it provides the most comprehensive investigation, to date, on the relationship between working capital management and firm valuation, profitability and risk in an emerging market. Second, this study documents the existence of an optimal level of NWC in an emerging market. Third, firm performance, as measured in both market and accounting value, can be improved with efficient working capital management. Finally, the study includes the impact of the business cycle in an analysis of the effects of working capital management on firm performance.

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