Effect of Working Capital Management on Firms’ Profitability: Empirical Evidence from Malaysia

Working capital management influence the profitably of the company and ultimately determine the firm value and the firm value is among the most important criteria for any shareholders or potential shareholders to decide whether to invest or not to invest. Inefficiency in managing the working capi...

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Main Author: Cheng, Mui Gek
Format: Thesis
Language:English
Published: 2013
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Online Access:http://eprints.intimal.edu.my/664/1/MBA%2076.pdf
http://eprints.intimal.edu.my/664/
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spelling my-inti-eprints.6642017-01-17T03:08:34Z http://eprints.intimal.edu.my/664/ Effect of Working Capital Management on Firms’ Profitability: Empirical Evidence from Malaysia Cheng, Mui Gek HD28 Management. Industrial Management Working capital management influence the profitably of the company and ultimately determine the firm value and the firm value is among the most important criteria for any shareholders or potential shareholders to decide whether to invest or not to invest. Inefficiency in managing the working capital will result in insolvency or eventually lead to bankruptcy. In other words, managers should ponder all the elements that will affect the working capital management. Consequently, the objective of this research paper is to examine the effects of working capital management on firms’ profitability in Malaysia and to provide better justification. In order to do so, a sample of 70 public listed companies from Bursa Malaysia was randomly selected and secondary data from the companies audited accounts from the years of 2010 to 2011 are collected and SPSS quantitative analysis was used and focused on multiple regressions. The results indicate that there is significant relationship between working capital management and profitability, therefore efficient working capital policy can improve profitability of the company and ultimately shareholders wealth. 2013 Thesis NonPeerReviewed text en http://eprints.intimal.edu.my/664/1/MBA%2076.pdf Cheng, Mui Gek (2013) Effect of Working Capital Management on Firms’ Profitability: Empirical Evidence from Malaysia. Masters thesis, INTI International University.
institution INTI International University
building INTI Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider INTI International University
content_source INTI Institutional Repository
url_provider http://eprints.intimal.edu.my
language English
topic HD28 Management. Industrial Management
spellingShingle HD28 Management. Industrial Management
Cheng, Mui Gek
Effect of Working Capital Management on Firms’ Profitability: Empirical Evidence from Malaysia
description Working capital management influence the profitably of the company and ultimately determine the firm value and the firm value is among the most important criteria for any shareholders or potential shareholders to decide whether to invest or not to invest. Inefficiency in managing the working capital will result in insolvency or eventually lead to bankruptcy. In other words, managers should ponder all the elements that will affect the working capital management. Consequently, the objective of this research paper is to examine the effects of working capital management on firms’ profitability in Malaysia and to provide better justification. In order to do so, a sample of 70 public listed companies from Bursa Malaysia was randomly selected and secondary data from the companies audited accounts from the years of 2010 to 2011 are collected and SPSS quantitative analysis was used and focused on multiple regressions. The results indicate that there is significant relationship between working capital management and profitability, therefore efficient working capital policy can improve profitability of the company and ultimately shareholders wealth.
format Thesis
author Cheng, Mui Gek
author_facet Cheng, Mui Gek
author_sort Cheng, Mui Gek
title Effect of Working Capital Management on Firms’ Profitability: Empirical Evidence from Malaysia
title_short Effect of Working Capital Management on Firms’ Profitability: Empirical Evidence from Malaysia
title_full Effect of Working Capital Management on Firms’ Profitability: Empirical Evidence from Malaysia
title_fullStr Effect of Working Capital Management on Firms’ Profitability: Empirical Evidence from Malaysia
title_full_unstemmed Effect of Working Capital Management on Firms’ Profitability: Empirical Evidence from Malaysia
title_sort effect of working capital management on firms’ profitability: empirical evidence from malaysia
publishDate 2013
url http://eprints.intimal.edu.my/664/1/MBA%2076.pdf
http://eprints.intimal.edu.my/664/
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score 13.211869