Capital Management
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2021 ◽  
Vol 12 (1) ◽  
pp. 389-407
Ronald Essel ◽  
Joyce Brobbey

The aim/purpose of this scientific inquiry is to empirically examine the impact of working capital management (WCM) [cash conversion cycle (CCC), number of days inventory (INV), number of days account receivable (AR), number of days account payable (AP)] and control variables [sales growth (GROW), size (SIZE), leverage (LEV), current ratio (CR) fixed financial assets to total assets (FFA)] on firm performance (FP) [ROA, Tobin’s Q (TQ)] in the context of an emerging economy, Ghana. The research used a dynamic panel System of Generalized Method of Moment (GMM) to test the hypotheses. Utilizing financial data extracted from final accounts of 36 listed companies, spanning 2010-2019, the study examined WCM-performance-nexuses by following the methodologies of researchers/scholars in extant literature. Findings/Results indicates that, whilst INV, AR, LEV demonstrated negative/inverse/indirect associations with FP; AP, GROW, SIZE, CR, FFA depicted positive/direct associations with FP. CCC however, exhibited a quadratic concave relationship with ROA.

2021 ◽  
Vol 4 (2) ◽  
pp. 192-214
Bahri Bahri ◽  
Dicky Arnendra Dwi Nugraha

The Covid-19 pandemic in Indonesia is still ongoing to this day causing the performance and health level of banking profitability to decline and the financial condition of the country disrupted. Banking profitability can be seen in the value of Return On Asset (ROA) to see the effectiveness of banking in making profits by utilizing total assets. The study aims to analyze the effect of financial ratios consisting of Capital Adequacy Ratio (CAR), Non-Performing Loan (NPL), Loan to Deposit Ratio (LDR), Operating Expenditures to Operating Income (BOPO), and Net Interest Margin (NIM) on Return On Asset (ROA) on banking going public listed on the Indonesia Stock Exchange (IDX) during 2020 during the Covid-19 pandemic. The population in this study was 40 banks with 160 data. Data analysis methods use descriptive statistical tests, classical assumption tests, multiple linear regression tests, t-tests, f-tests, and determination coefficient tests. The results of the study proved that partially the variables CAR, LDR, and BOPO had a negative and significant effect on ROA. NIM has a positive and significant influence on ROA. While NPL has no influence and is not significant to ROA in banks registered with IDX in 2020. Simultaneously car, NPL, LDR, BOPO, and NIM variables have a significant effect on ROA. The implications of the results of the study prove that in the time of the Covid-19 pandemic, the condition of banks registered with the IDX is still healthy and meeting the minimum CAR ratio below 8%, meaning that banks still earn profits from the results of credit capital management to customers. The level of insecurity of the number of bad loans is still low and can still overcome. The value of the operating expense ratio of banking operating.

2021 ◽  
Vol 2021 ◽  
pp. 1-12
Zeyu Lin ◽  
Shuai Li

Enterprise economy refers to the comprehensive situation reflected in the gross product, production scale, total production and efficiency, technological content, marketing means, and so on; under certain social conditions, enterprises use resources obtained by law to engage in economic activities. Under the guidance of consciousness or culture, enterprises use “legally obtained resources” to promote economic development. Enterprise economy is affected by manpower, capital, management, operation, policy, and other aspects. In the context of the rapid development of big data in the current era, this paper proposes a prediction model of enterprise economic activity behavior based on neural network and ARIMA by investigating a variety of artificial intelligence models and verifies its feasibility. Commodity circulation enterprises have a more urgent demand for the development of business audit due to their operation characteristics. Therefore, this paper takes commodity circulation enterprises as representatives and predicts business audit in the big data environment based on the model proposed in this paper.

2021 ◽  
Vol 14 (4) ◽  
pp. 407-432
Aleksandra A. TERSKIKH

Subject. The article addresses the financial potential of the organization, investigates economic relations stemming from financial potential formation and prospects for its growth as a result of actions and initiatives of managerial staff. Objectives. The aim is to disclose the content of the rational approach in financial and analytical studies focused on expressing the analytical value of qualitative and quantitative determination of financial potential in the process of substantiating management decisions on achieving competitiveness and long-term efficiency of economic entity. Methods. The study rests on modern theories of capital structure, methods for developing financial strategy, solving multi-criteria economic problems, including ranking techniques, the graphical and analytical models. Results. We developed methodological recommendations for financial potential assessment, which include the indicators of strategic level of investment capital management based on the systems approach to the use of financial, strategic and investment analysis tools. Their application in practice will increase the informativeness of potential assessment. The findings have an applied focus aimed at professional competencies in the development of organizational and administrative documents that regulate the analysis and assessment of financial potential based on strategic goals. Conclusions. Along with the existing methods, the methodological recommendations form a subsystem of analytical support focused on the organization’s value and finance management. Their use in financial strategy formation enables to identify and study strategic alternatives of development, create financial sections of business plans, justify adjustments to the strategy and tactics of financial management.

2021 ◽  
Vol 16 (12) ◽  
pp. 17
Salah Mohamed Eladly

This paper is an attempt to investigate the effect of working capital management, measured by (Current Ratio, Quick Ratio and Liquidity)on dependent variables (Return on Assets, Return on Equity and Earning Assets (Asset Quality) of insurance firms in Egypt, the study sample is 49% from total insurance firms working of the insurance market in Egypt in 1999- 2019.A structural equation modelling was selected to construct of the model of this study, The evidences show that There is a positive significant effect on construct of the independent variables, current ratio (x1), quick ratio (x2), and liquidity (x3) on construct of the dependent variables in terms of Return on Equity (Y1), at a probability level less than (0.001). This validates the first hypothesis; the independent variables Current Ratio(x1), Quick Ratio(x2), and Liquidity(x3) have a significant effect on the dependent variables Return on Equity (Y1), There is a positive significant effect on the construct of the independent variables, Current Ratio (x1), Quick Ratio (x2), and Liquidity (x3) on the construct of the dependent variables in terms of Earning Assets (Asset Quality) (Y3), probability level less than (0.001). This validates of the third hypothesis; the independent variables in terms of Current Ratio (x1), Quick Ratio (x2), and Liquidity (x3) have a significant effect on (Earning Assets) Asset Quality (Y3).

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Rejoice Wodomdedzi Foli ◽  
Livingstone Divine Caesar

Purpose This paper aims to examine the complexity of the relationship between human capital management (HCM) and the performance of community-based health planning and services (CHPS) from an emerging market perspective. It further explores the mediating role of community orientation; institutional intervention and capability of resources in the hypothesized relationship between HCM and the performance of CHPS. Design/methodology/approach Quantitative data was collected (through a survey) from 210 health volunteers using a systematic random sampling technique. A 95% response rate was realized and the data was analyzed using exploratory and confirmatory factor analysis and hierarchical multiple regression. Findings HCM has a direct relationship with the performance of the CHPS model. It also emerged that institutional intervention and capability of resources partially mediate the relationship between HCM and CHPS performance; while community orientation fully mediates the same relationship. Practical implications Capacity building for staff must be wired into the workings of the CHPS model to yield the maximum impact. This points to the need for training packages that focus on building both social and cultural competence for staff working among locals under the CHPS model. Effective planning is, thus, needed to ensure a seamless allocation of adequate resources to boost performance. Also, community engagement is critical to the success of the CHPS model as it could serve as a platform for awareness creation among locals. Originality/value This paper introduces community orientation, institutional intervention and capability of resources as mediating variables to investigate the hypothesized relationships. It offers a developing country insight into how HCM-related factors might be impacting the performance of community-based health programs.

Risks ◽  
2021 ◽  
Vol 9 (11) ◽  
pp. 201
Ahsan Akbar ◽  
Minhas Akbar ◽  
Marina Nazir ◽  
Petra Poulova ◽  
Samrat Ray

Extant empirical studies have predominantly focused on the nexus between working capital management (WCM) and corporate profitability. While there is a dearth of literature on the nexus between WCM and a firm’s risk, the present study examines Pakistani-listed firms coming from 12 diverse industrial segments to observe this association for a time span of ten years (2005–2014). To ensure robustness, we employed a System Generalized Method of Moments (SGMM) regression estimation to investigate the influence of WCM on the operational and market risk for firms. Empirical testing revealed that higher working capital levels were associated with lower volatility in firms’ stock price, which shows that shareholders prefer a conservative working capital policy. Moreover, firms with better cash positions were subject to lesser stock market volatility. In contrast, excess working capital and a larger net trade cycle were associated with increased volatility in the operating income. Besides, firms with lower working capital levels relative to their respective industry experienced fewer fluctuations in their operating profits. Our findings assert that short-term financial management has important ramifications for firms’ operating and market fundamentals. Practical implications are discussed for corporate managers and relevant stakeholders.

2021 ◽  
pp. 64-66
I. I. Rodionova ◽  
A.V. Kolesnikov

The article examines the features of the human capital management system in the context of digitalization, which is currently considered one of the key factors of the company’s competitiveness.

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