Impact of working capital management on firm profitability: Empirical study in Vietnam

Autor:	Nguyen Thi Thanh Phuong, Dang Ngoc Hung
Jazyk:	angličtina
Rok vydání:	2020
Předmět:	working capital management days of inventory on hand days of sales outstanding average payment period cash conversion cycle profitability Accounting. Bookkeeping HF5601-5689
Zdroj:	Accounting, Vol 6, Iss 3, Pp 259-266 (2020)
Druh dokumentu:	article
ISSN:	2369-7393 2369-7407
DOI:	10.5267/j.ac.2020.3.001
Popis:	This article studies the impact of working capital management (WCM) on firm profitability (FP) in Vietnam. The study uses the Generalized Least Squares (GLS) regression method using a sample of 5,295 firms (observations) listed on stock market in Vietnam from 2009 to 2018. First, the study found that inventory turnover, average receivables (AR), average payment (AP), cash conversion cycle (CCC) had negative impacts on the firm profitability (FP). However, when we continued using quadratic function, we found that INV, AR, AP and CCC had a non-linear relationship (the U-curve) with FP. These research results contribute managerial contributions for firms in efficiently using capital when considering its investment policy.
Databáze:	Directory of Open Access Journals
Externí odkaz:	https://doaj.org/article/7f754a308678402fb4923cc599bac281 Zobrazit plný text záznamu View record in DOAJ