Cover Image

Working capital management and firm performance of small and large firms in Malaysia

Working capital always being disregard in financial decision making since it involve investment and financing in short term period. However, it is an important component in firm financial management decision. An optimal working capital management is expected to contribute positively to the creation...

Full description

Saved in:
Bibliographic Details
Main Authors: Mohd Ashhari, Zariyawati, Mohd Tahir, Hirnissa, Faizal, Diana Rose
Format: Article
Language:English
Published: Global Business and Social Entrepreneurship Resources 2017
Online Access:http://psasir.upm.edu.my/id/eprint/63727/1/Working%20capital%20management%20and%20firm%20performance%20of%20small%20and%20large%20firms%20in%20Malaysia.pdf
http://psasir.upm.edu.my/id/eprint/63727/
http://gbse.com.my/#portfolio
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.upm.eprints.63727
record_format eprints
spelling my.upm.eprints.637272019-10-23T06:45:08Z http://psasir.upm.edu.my/id/eprint/63727/ Working capital management and firm performance of small and large firms in Malaysia Mohd Ashhari, Zariyawati Mohd Tahir, Hirnissa Faizal, Diana Rose Working capital always being disregard in financial decision making since it involve investment and financing in short term period. However, it is an important component in firm financial management decision. An optimal working capital management is expected to contribute positively to the creation of firm value. To reach optimal working capital management firm manager should control the trade off between profitability and liquidity accurately. The intention of this study is to examine the relationship between working capital management and firm profitability. Cash conversion cycle is used as measure of working capital management. This study is used panel data of 1628 firm-year for the period of 1996-2006 that consist of six different economic sectors which are listed in Bursa Malaysia. The coefficient results of Pooled OLS regression analysis provide a strong negative significant relationship between cash conversion cycle and firm profitability. This reveals that reducing cash conversion period results to profitability increase. Thus, in purpose to create shareholder value, firm manager should concern on shorten of cash conversion cycle till optimal level is achieved. Global Business and Social Entrepreneurship Resources 2017-09 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/63727/1/Working%20capital%20management%20and%20firm%20performance%20of%20small%20and%20large%20firms%20in%20Malaysia.pdf Mohd Ashhari, Zariyawati and Mohd Tahir, Hirnissa and Faizal, Diana Rose (2017) Working capital management and firm performance of small and large firms in Malaysia. Journal of Global Business and Social Entrepreneurship, 3 (7). pp. 166-177. ISSN 2462-1714 http://gbse.com.my/#portfolio
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description Working capital always being disregard in financial decision making since it involve investment and financing in short term period. However, it is an important component in firm financial management decision. An optimal working capital management is expected to contribute positively to the creation of firm value. To reach optimal working capital management firm manager should control the trade off between profitability and liquidity accurately. The intention of this study is to examine the relationship between working capital management and firm profitability. Cash conversion cycle is used as measure of working capital management. This study is used panel data of 1628 firm-year for the period of 1996-2006 that consist of six different economic sectors which are listed in Bursa Malaysia. The coefficient results of Pooled OLS regression analysis provide a strong negative significant relationship between cash conversion cycle and firm profitability. This reveals that reducing cash conversion period results to profitability increase. Thus, in purpose to create shareholder value, firm manager should concern on shorten of cash conversion cycle till optimal level is achieved.
format Article
author Mohd Ashhari, Zariyawati
Mohd Tahir, Hirnissa
Faizal, Diana Rose
spellingShingle Mohd Ashhari, Zariyawati
Mohd Tahir, Hirnissa
Faizal, Diana Rose
Working capital management and firm performance of small and large firms in Malaysia
author_facet Mohd Ashhari, Zariyawati
Mohd Tahir, Hirnissa
Faizal, Diana Rose
author_sort Mohd Ashhari, Zariyawati
title Working capital management and firm performance of small and large firms in Malaysia
title_short Working capital management and firm performance of small and large firms in Malaysia
title_full Working capital management and firm performance of small and large firms in Malaysia
title_fullStr Working capital management and firm performance of small and large firms in Malaysia
title_full_unstemmed Working capital management and firm performance of small and large firms in Malaysia
title_sort working capital management and firm performance of small and large firms in malaysia
publisher Global Business and Social Entrepreneurship Resources
publishDate 2017
url http://psasir.upm.edu.my/id/eprint/63727/1/Working%20capital%20management%20and%20firm%20performance%20of%20small%20and%20large%20firms%20in%20Malaysia.pdf
http://psasir.upm.edu.my/id/eprint/63727/
http://gbse.com.my/#portfolio
_version_ 1651869091560947712
score 13.211869

Similar Items