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The effect of working capital management on firms' profitability in Malaysia

This study investigates the relationship between working capital management and firms’ profitability in Malaysia. It examines the components in working capital such as days’ accounts payable, days’ accounts receivables, days’ inventory held and cash conversion cycle in relation to return on asset (R...

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Main Author: Nadzrah, Abdullah
Format: Thesis
Language:English
English
Published: 2014
Subjects:
HG Finance
Online Access:https://etd.uum.edu.my/4173/1/s812376.pdf
https://etd.uum.edu.my/4173/2/s812376_abstract.pdf
https://etd.uum.edu.my/4173/
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spelling my.uum.etd.41732022-08-03T02:04:13Z https://etd.uum.edu.my/4173/ The effect of working capital management on firms' profitability in Malaysia Nadzrah, Abdullah HG Finance This study investigates the relationship between working capital management and firms’ profitability in Malaysia. It examines the components in working capital such as days’ accounts payable, days’ accounts receivables, days’ inventory held and cash conversion cycle in relation to return on asset (ROA). In general, this study contributes to the scarce of literature in this area in Malaysia by providing empirical evidences. Data were obtained from DataStream for two sectors in Malaysia. The sectors chosen are construction & material, and food producer sector. The time period for this study covers from year 2008 to 2012. Finding show working capital management affects firms’ profitability. In construction and material sector, ROA has negative relationship with days’ accounts receivable and days’ inventory held, but positive relationship with days’ accounts payable. In food producer sector, ROA has negative relationship with days’ accounts receivable and payable but negative relationship with days’ inventory held. In both sectors, cash conversion cycles are negatively associated with firm profitability. It indicates that longer duration of cash conversion cycle will decreases firm’s profitability 2014-07 Thesis NonPeerReviewed text en https://etd.uum.edu.my/4173/1/s812376.pdf text en https://etd.uum.edu.my/4173/2/s812376_abstract.pdf Nadzrah, Abdullah (2014) The effect of working capital management on firms' profitability in Malaysia. Masters thesis, Universiti Utara Malaysia.
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Electronic Theses
url_provider http://etd.uum.edu.my/
language English
English
topic HG Finance
spellingShingle HG Finance
Nadzrah, Abdullah
The effect of working capital management on firms' profitability in Malaysia
description This study investigates the relationship between working capital management and firms’ profitability in Malaysia. It examines the components in working capital such as days’ accounts payable, days’ accounts receivables, days’ inventory held and cash conversion cycle in relation to return on asset (ROA). In general, this study contributes to the scarce of literature in this area in Malaysia by providing empirical evidences. Data were obtained from DataStream for two sectors in Malaysia. The sectors chosen are construction & material, and food producer sector. The time period for this study covers from year 2008 to 2012. Finding show working capital management affects firms’ profitability. In construction and material sector, ROA has negative relationship with days’ accounts receivable and days’ inventory held, but positive relationship with days’ accounts payable. In food producer sector, ROA has negative relationship with days’ accounts receivable and payable but negative relationship with days’ inventory held. In both sectors, cash conversion cycles are negatively associated with firm profitability. It indicates that longer duration of cash conversion cycle will decreases firm’s profitability
format Thesis
author Nadzrah, Abdullah
author_facet Nadzrah, Abdullah
author_sort Nadzrah, Abdullah
title The effect of working capital management on firms' profitability in Malaysia
title_short The effect of working capital management on firms' profitability in Malaysia
title_full The effect of working capital management on firms' profitability in Malaysia
title_fullStr The effect of working capital management on firms' profitability in Malaysia
title_full_unstemmed The effect of working capital management on firms' profitability in Malaysia
title_sort effect of working capital management on firms' profitability in malaysia
publishDate 2014
url https://etd.uum.edu.my/4173/1/s812376.pdf
https://etd.uum.edu.my/4173/2/s812376_abstract.pdf
https://etd.uum.edu.my/4173/
_version_ 1740828419685351424
score 13.211869

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