The impact of working capital management on manufacturing firms’ profitability – an emerging market perspective

• Autorzy: Arulanandam Benedict Valentine , Glinkowska-Krauze Beata , Tan Pei Yu

Identyfikatory

DOI

10.29119/1641-3466.2023.169.1

• Języki publikacji: EN

Abstrakty

EN

Purpose: This study aims to investigate the effects of working capital management on firm profitability of listed manufacturing companies in Malaysia. Design/methodology/approach: This study uses account payables, inventory turnover, account receivables, cash conversion cycle, firm size, growth, leverage and current ratio as accounting information variables. Secondary data was collected for all variables over a ten-year period, i.e. 2009 to 2018 and was obtained from the annual report published via Bursa Malaysia (Malaysian Stock Exchange) official website. Data was analyzed by using IBM SPSS Statistics Subscription software. Descriptive statistics, correlation analysis and multiple regression analysis were utilized in this study. Findings: The results revealed that inventory turnover in days, account receivables and firm size have a positive significant relationship with manufacturing firms’ profitability, while account payables and cash conversion cycle have a positive insignificant relationship. Research limitations/implications: The sample size is too small for any generalization. A mixed method approach in the future could contribute to a holistic finding. Practical implications: Since these variables contained significant influence on firm profitability, it is recommended that listed manufacturing companies should prepare a complete and timely manner of accounting information based on the regulation context in Malaysia. Social implications: It provides an empirical evidence on the importance of working capital management amongst the manufacturing concerns in Malaysia and its impact on its business sustainability. Originality/value: This study contributes to the limited research on working capital management involving manufacturing companies in Malaysia. Paper Type: Research Paper.

Słowa kluczowe

EN

working capital; profitability; manufacturing companies

PL

kapitał obrotowy; rentowność; przedsiębiorstwa produkcyjne

• Wydawca: Wydawnictwo Politechniki Śląskiej
• Czasopismo: Zeszyty Naukowe. Organizacja i Zarządzanie / Politechnika Śląska
• Rocznik: 2023
• Tom: z. 169
• Strony: 9--32
• Opis fizyczny: Bibliogr. 80 poz.

Twórcy

autor

Arulanandam Benedict Valentine

• Victoria University Undergraduate Department, Sunway College, Bandar Sunway, Malaysia

• https://orcid.org/0000-0002-9653-4183

autor

Glinkowska-Krauze Beata

• University of Lodz; Center for Scientific and Research Cooperation, Poland-Ukraine

• https://orcid.org/0000-0002-6915-3297

autor

Tan Pei Yu

• Independent Researcher, Kuala Lumpur, Malaysia

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Uwagi

Opracowanie rekordu ze środków MNiSW, umowa nr SONP/SP/546092/2022 w ramach programu "Społeczna odpowiedzialność nauki" - moduł: Popularyzacja nauki i promocja sportu (2024).