scholarly journals The Impact of Corporate Governance on Working Capital Management Efficiency: Evidence from the Listed Companies in the Consumer Services Sector in Botswana

2018 ◽  
Vol 10 (12) ◽  
pp. 135
Author(s):  
Sathyamoorthi C. R. ◽  
Christian J. Mbekomize ◽  
Mogotsinyana Mapharing ◽  
Popo Selinkie
Keyword(s):  
Corporate Governance ◽  
Listed Companies ◽  
Capital Management ◽  
Working Capital ◽  
Governance Mechanisms ◽  
Working Capital Management ◽  
Management Efficiency ◽  
Corporate Governance Mechanisms ◽  
The Impact ◽  
Moderate Relationship

The paper presents the findings of the analysis of the impact of corporate governance mechanisms on working capital management efficiency in the listed companies of the Consumer service sector in Botswana. Eight corporate governance elements and seven working capital components were extracted from the annual reports of a sample of six companies for the period 2012 to 2017 for the analysis. Thirty six observations were obtained. Pearson correlations were executed to determine the relationship between corporate governance elements and working capital components. OLS regression analysis was performed to establish the explaining power of the combination of corporate governance elements on each of the working capital components. The correlation analysis shows that number of non-executive directors has a significant negative but moderate relationship with cash conversion cycle and number of board subcommittees has significant positive but moderate relationship with Debt ratio. The regression results suggest that corporate governance mechanisms have a significant impact on working capital management, the highest impact being reflected on inventory conversion period. The implications of these findings are that boards of directors have a significant role to play in working capital management efficiency of the companies they govern. They should therefore continue providing attainable policies on working capital management and remain vigilant on demanding feedback on their implementations.

scholarly journals The impact of merger on working capital management efficiency of American production firms

2016 ◽  
Vol 13 (3) ◽  
pp. 100-109 ◽  
Author(s):  
Amarjit Gill ◽  
Nahum Biger ◽  
Rajen Tibrewala ◽  
Pradeep Prabhakar
Keyword(s):  
Causal Relationship ◽  
Research Design ◽  
Financial Management ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Management Consultants ◽  
Management Efficiency ◽  
The Impact

The purpose of this study is to examine the impact of merger on the efficiency of working capital management of American production firms. This study applied a co-relational research design. A sample of 497 listed American production firms for a period of 4 years (from 2010-2014) was analyzed. The findings of this study indicate that mergers may contribute to an improvement of the efficiency of working capital management. This is a co-relational study that investigated the association between merger and working capital management efficiency. There is not necessarily a causal relationship between the two, although the paper provides some conjectures to such relationship. The findings of this study may only be generalized to firms similar to those that were included in this research. This study contributes to the literature on the factors that improve the efficiency of working capital management, and in particular on the association between merger and the efficiency of working capital management. The findings may be useful for financial managers, investors, financial management consultants, and other stakeholders.

scholarly journals Do Corporate Governance Practices Influence Working Capital Management Efficiency? Evidence From Listed Manufacturing Companies in Sri Lanka

2019 ◽  
Vol 10 (3) ◽  
pp. 205
Author(s):  
Lingesiya Kengatharan ◽  
W. S. Sanoli Tissera
Keyword(s):  
Corporate Governance ◽  
Manufacturing Companies ◽  
Capital Management ◽  
Working Capital ◽  
Board Meeting ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Management Efficiency ◽  
Ceo Tenure ◽  
Governance Practices

The purpose of the study is to investigate the influence of corporate governance practices on working capital management efficiency in the listed companies of the manufacturing sector in Sri Lanka. Board meeting, board size, CEO tenure and size of the audit committee are used as corporate governance practices and the cash conversion cycle is calculated to measure the working capital management efficiency. Sales growth and firm size are considered as control variables to evaluate the influence of corporate governance practices on working capital management efficiency. Relevant data are extracted from the annual reports of 30 listed manufacturing companies for the period from 2013 to 2017. Finally, 150 observations are used for the data analysis. Pearson correlations are executed to determine the relationship between corporate governance practices and working capital management efficiency. OLS regression analysis is performed to determine the explanatory power of the combination of corporate governance practices on the efficiency of working capital management. The correlation analysis shows that board meeting, CEO tenure and firm size have a significant positive relationship with cash conversion cycle. The regression results suggest that board meetings and CEO tenure have a significant positive influence on cash conversion cycle. Generally, the shorter the cash conversion cycle is better for the business, therefore, according to this result the increase in a board meeting and CEO tenure have the considerable decreasing in liquidity position in an organization. Therefore, the outcome of the study may be useful to the top management of the firms and practitioners when they are implementing governance mechanisms in order to enhance the working capital efficiency.

scholarly journals The Impact of Corporate Governance on Working Capital Management (WCM) Efficiency: An Empirical Study of Manufacturing Firms of Pakistan

2019 ◽  
Vol IV (I) ◽  
pp. 140-149
Author(s):  
Ijlal Haider ◽  
Rais Khan ◽  
Muhammad Suhail
Keyword(s):  
Corporate Governance ◽  
Least Square Method ◽  
Manufacturing Firms ◽  
Least Square ◽  
Annual Reports ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Method Factors ◽  
The Impact

This article examines the impact of corporate governance of manufacturing firms of Pakistan considering Working Capital Management. A quantitative approach is used to analyze and test research hypothesis. Annual reports of forty-seven (47) companies are studied for a period of five years (2010-2014) from 100 index population with the total of 235 observations. Analysis on the obtained data were done using descriptive and regression analysis (Ordinary Least Square) method. Factors considered for corporate governance included Board Size, Board Meeting, and Board Committee Peshawar. Whereas, Working Capital Management was measured by account receivable (days), account inventory (days) and account payable (days). The results of study concludes that no significant impact of corporate governance was observed on Working Capital Management of manufacturing firms in Pakistan.

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