The effects of working capital management on SMEs profitability in Malaysia
This study investigates the effect of working capital management on SMEs profitability in Malaysia using a sample of 66 SME manufacturing firms covering from 2006 until 2012. Ordinary least square (OLS) regression is used to estimate the relationship between the independent and dependent variable...
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| Format: | Thesis |
| Language: | en en |
| Published: |
2015
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| Online Access: | https://etd.uum.edu.my/4601/1/s815149.pdf https://etd.uum.edu.my/4601/2/s815149_abstract.pdf https://etd.uum.edu.my/4601/ |
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| _version_ | 1833436337562189824 |
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| author | Rahima, Abbas Ali |
| author_facet | Rahima, Abbas Ali |
| author_sort | Rahima, Abbas Ali |
| building | UUM Library |
| collection | Institutional Repository |
| content_provider | Universiti Utara Malaysia |
| content_source | UUM Electronic Theses |
| continent | Asia |
| country | Malaysia |
| description | This study investigates the effect of working capital management on SMEs
profitability in Malaysia using a sample of 66 SME manufacturing firms covering
from 2006 until 2012. Ordinary least square (OLS) regression is used to estimate the
relationship between the independent and dependent variables. The results show that,
there is negative relationship between working capital management measures i.e.
days account receivables (DAR), inventory turnover in days (ITID), and cash
conversion cycle (CCC) and SMEs profitability proxies i.e. return on assets (ROA)
and return on equity (ROE) except for net operating profit (NOP) which is having
positive effect with CCC. Furthermore, the study shows that there is positive
relationship between days account payables (DAP) and SMEs profitability measured
by (ROA and ROE) but having a negative relation with NOP. The results imply that
Profitability of SME manufacturing firms depends upon effective working capital
management. Therefore, this study suggests that SME manufacturing companies can
improve their profitability by managing working capital properly. |
| format | Thesis |
| id | my.uum.etd-4601 |
| institution | Universiti Utara Malaysia |
| language | en en |
| publishDate | 2015 |
| record_format | eprints |
| spelling | my.uum.etd-46012021-04-05T01:01:14Z https://etd.uum.edu.my/4601/ The effects of working capital management on SMEs profitability in Malaysia Rahima, Abbas Ali HG Finance This study investigates the effect of working capital management on SMEs profitability in Malaysia using a sample of 66 SME manufacturing firms covering from 2006 until 2012. Ordinary least square (OLS) regression is used to estimate the relationship between the independent and dependent variables. The results show that, there is negative relationship between working capital management measures i.e. days account receivables (DAR), inventory turnover in days (ITID), and cash conversion cycle (CCC) and SMEs profitability proxies i.e. return on assets (ROA) and return on equity (ROE) except for net operating profit (NOP) which is having positive effect with CCC. Furthermore, the study shows that there is positive relationship between days account payables (DAP) and SMEs profitability measured by (ROA and ROE) but having a negative relation with NOP. The results imply that Profitability of SME manufacturing firms depends upon effective working capital management. Therefore, this study suggests that SME manufacturing companies can improve their profitability by managing working capital properly. 2015 Thesis NonPeerReviewed text en https://etd.uum.edu.my/4601/1/s815149.pdf text en https://etd.uum.edu.my/4601/2/s815149_abstract.pdf Rahima, Abbas Ali (2015) The effects of working capital management on SMEs profitability in Malaysia. Masters thesis, Universiti Utara Malaysia. |
| spellingShingle | HG Finance Rahima, Abbas Ali The effects of working capital management on SMEs profitability in Malaysia |
| title | The effects of working capital management on SMEs profitability in Malaysia |
| title_full | The effects of working capital management on SMEs profitability in Malaysia |
| title_fullStr | The effects of working capital management on SMEs profitability in Malaysia |
| title_full_unstemmed | The effects of working capital management on SMEs profitability in Malaysia |
| title_short | The effects of working capital management on SMEs profitability in Malaysia |
| title_sort | effects of working capital management on smes profitability in malaysia |
| topic | HG Finance |
| url | https://etd.uum.edu.my/4601/1/s815149.pdf https://etd.uum.edu.my/4601/2/s815149_abstract.pdf https://etd.uum.edu.my/4601/ |
| url_provider | http://etd.uum.edu.my/ |