Working capital management, board structure and Tobin's q ratio of Thai listed firms

PurposeThis study investigates whether the integration between working capital management (WCM) and the structure of a firm's board of directors impacts its Tobin's q ratio. The sample set consists of 319 Thai listed firms with 3,190 firm-year observations from 2010 to 2019.Design/methodology/approachThe two-step generalized method of moments (two-step GMM) model is employed to address endogeneity.FindingsThe empirical results show that having both (1) a high level of net working capital holdings, a long period of net trade cycles or using an aggressive policy in working capital investment and (2) a more diverse board of directors decrease a firm's Tobin's q ratio. Conversely, when a firm's managers employ an aggressive policy for their working capital financing and the board structure of their firms is highly diverse, the firm's Tobin's q ratio increases. This indicates the appropriateness of some WCM policies is dependent on the characteristics of a firm's board of directors. Thus, the different integration between WCM and board structure may elicit dissimilar outcomes for a firm's Tobin's q ratio.Originality/valueTo their knowledge, the authors are the first to investigate the influence of the integration between WCM and board characteristics on Tobin's q ratio.

IDENTIFIKASI IKM (INDUSTRI KECIL MENENGAH) KECAMATAN JEPARA KABUPATEN JEPARA

<p class="Abstract"><em>Over time, The number of IKMs which continued to increase and were not accompanied by data collection was what ultimately caused problems. The lack of awareness to register a business that is owned is still one of the causes. In fact, this is very important to do. Seeing the above phenomenon makes us aware of the importance of data collection on IKM, especially those in Jepara District, Jepara Regency. This research method uses a qualitative approaches. The analysis technique used is descriptive analysis and normative analysis. The process of validation and data collection is based on the indocators contained in the querstionnaire. 9 indicators in data collection, namely IKM business actors, Business Permits, Type Of Industry, KBLI, Number Of Workers, Raw Materials, Working Capital, Production Capacity, and Investment. The final result of the activity is a data master document for IKM in Jepara District which is compiled in order to support the smooth implementation of goods / services procurement. </em></p><p class="Abstract"> </p>

PENGARUH TINGKAT EFEKTIVITAS PERPUTARAN KAS, PIUTANG, DAN MODAL KERJA TERHADAP RENTABILITAS EKONOMI PADA KOPERASI PEDAGANG PASAR GROGOLAN BARU (KOPPASGOBA) PERIODE 2016-2020

This study aims to test and analyze the effect of effectiveness of cash turnover, receivables,and working capital on economic rentability in the New Grogolan Market Traders Cooperative of Pekalongan City from 2016 to 2020. The method used in this study was quantitative research method with documentation techniques and analyzed used multiple linear regression analysis. The results of this study showed (1) the effectiveness of cash turnover has no significant effect on economic rentability, (2) the effectiveness of receivables turnover has no significant effect on economic rentability, (3) the effectiveness of working capital turnover has a positive and significant effect on economic rentability, and (4) there is a positive and significant effect on the effectiveness of cash turnover, receivables, and working capital together on economic rentability. Keywords: Turnover of cash, turnover of receivables, turnover of working capital, and economic rentability.

effect of net trade cycle, firm size, and networking capital on profitability with cash holdings as intervening variables in cement companies in Indonesia

This study aims to examine a model that hypothesizes that the net trade cycle, company size, and net working capital of cement companies in Indonesia impact achieving a return on assets as a proxy for profitability through the company's cash holdings. The sample consists of 45 cement producers in Indonesia that have produced commercially before 2011 and regularly publish company annual reports. The results of the path analysis confirm that the net trade cycle, firm size, and networking capital do not affect the return on assets as a proxy for profitability. Likewise, statistically, it still shows the same results after being mediated with cash holdings. Moreover, found the effect of cash holdings on ROA. These findings can provide a starting point for further research to find a more appropriate formula to increase profitability, especially for companies in the cement sector in Indonesia, where utilization rates tend to be low, and market conditions are becoming very competitive.

The effect of working capital management and credit management policy on Jordanian banks’ financial performance

This study investigated the impact of Working Capital Management (WCM) and Credit Management Policy (CMP) on the Financial Performance (FP) of Jordanian banks (JB). The study data were obtained from 16 Jordanian banks listed on the Amman Stock Exchange (ASE) between 2017 and 2020. The study used panel data to investigate the relationship between the two independent variables, WCM and CMP, and the dependent variable FP; 64 financial reports to Jordanian banks were analyzed to measure this relationship. To test hypotheses, multiple regression was used. The study found a statistically significant relationship between WCM and FP, and the independent variable was able to explain 34.1% of the changes that occur in the dependent variable. In addition, the outcome approved that there is a statistically significant relationship between CMP and FP. Furthermore, CMP explained about 41.8% of changes in the dependent variable. The findings of this study indicate support for the banks’ performance; a bank may need to lengthen client credit terms, prolong the cash transfer cycle, and require a more extended payment period when judging on WCM. Acknowledgment The publication of this research has been supported by the Deanship of Scientific Research and Graduate Studies at Philadelphia University – Jordan.

The Benefits of e-Commerce before and during the Covid-19 Pandemic for Small Enterprises in Indonesia

This study aims to analyze the benefits of e-commerce for small enterprises and its consequences before and during the COVID-19 pandemic. Furthermore, it examines the effects on the decrease in income of small enterprises and their response to a regulation restricting community activities. It also provides an outline of the support needed by small businesses. Meanwhile, a descriptive analysis and a paired t-test were used to analyze data (525 small enterprises in Indonesia) from an online questionnaire survey between May and June 2021. The results showed several significant discoveries, including the following: first, the COVID-19 pandemic resulted in a decline in revenue. Second, limits on community activities exacerbate the plight of small enterprises. Third, small enterprises sought several forms of assistance, with working capital accounting for the lion`s share of requests. Finally, substantial variations exist in respondents` perceptions of the benefits of e-commerce before and during the COVID-19 pandemic. Furthermore, these results contribute to the small medium enterprises literature and have significant policy implications for developing countries.

The effect of liquidity risk on the performance of banks: Evidence from Jordan

This study aimed to determine the impact of liquidity risk on financial performance of Jordanian banks, where liquidity risk was measured by (Liquidity ratio, net working capital, cash and investment ratio to total deposits), and financial performance was also measured through the index (return on assets) and the modifying variable (bank size) measured through the natural logarithm of total assets was also added. To achieve the objectives of the study, the analytical quantitative approach was adopted. The study community consisted of all 13 commercial banks listed on the Amman Stock Exchange. All banks in the study community were selected as a study sample using the comprehensive survey method, and the statistical analysis program (SPSS) was used to test the study hypotheses. Based on the results of the statistical analysis, it was found that there was an impact of liquidity risk on financial performance measured by return on assets in Jordanian commercial banks listed on Amman Stock Exchange, and there was an impact for each of (current liquidity ratio, net working capital, cash and investment ratio to total deposits) on financial performance measured by return on assets in Jordanian commercial banks listed on Amman Stock Exchange. It was also found that the size of the bank contributes to modifying the effect of liquidity risk on financial performance measured by return on assets in Jordanian commercial banks listed on Amman Stock Exchange. The study concluded a set of recommendations, the most important of which are: commercial bank administrations should increase interest in exploiting their liquidity within acceptable risk limits to reach optimal ratios for financial performance by balancing the returns to be achieved with the potential risks of such expenses in a way that ensures the positive impact of liquidity risk on the financial performance of those banks.