The paper investigates the long run relationship and causality issues between working capital and profitability in 66 firms in Nigeria by using the panel cointegration method for the period 1999-2007. The empirical re...The paper investigates the long run relationship and causality issues between working capital and profitability in 66 firms in Nigeria by using the panel cointegration method for the period 1999-2007. The empirical results show that there is long run steady-state relationship between working capital and profitability. However, the short run causal relationship runs from working capital to profitability suggesting that inefficient working capital management may harm profitability.展开更多
The present study investigated the effect of working capital management component on corporate profitability. A sample of 106 firms listed on Borsa Istanbul Stock Exchange (BIST) for the period of 2003-2013 was used...The present study investigated the effect of working capital management component on corporate profitability. A sample of 106 firms listed on Borsa Istanbul Stock Exchange (BIST) for the period of 2003-2013 was used. The secondary data for analysis were taken from Bloomberg's Database. The present study aims to explore the effect of working capital management components on corporate profitability. We observed that there was a negative correlation between gross operating profit and accounts receivables (A/R). We also found that there was a positive correlation between gross operating profit and number of days inventory. But they did not affect the profitability of firms in the study at a significant level.展开更多
Efficient working capital management is an integral component of the overall corporate strategy to create shareholders' wealth. This paper seeks to extend findings regarding the relationship between working capital m...Efficient working capital management is an integral component of the overall corporate strategy to create shareholders' wealth. This paper seeks to extend findings regarding the relationship between working capital management and profitability. A sample of 69 companies listed on the Johannesburg Stock Exchange (JSE) for the period from 1998 to 2008 was selected. The results revealed a statistically significant negative relationship among profitability (as measured through gross operating profit), the cash conversion cycle (CCC), and number of days accounts receivable (AR). The results also revealed a positive and significant relationship among profitability, the number of days accounts payable (AP), and the number of days inventory (INV). The results suggested that managers could increase their company's profitability by effectively managing the CCC and its components.展开更多
文摘The paper investigates the long run relationship and causality issues between working capital and profitability in 66 firms in Nigeria by using the panel cointegration method for the period 1999-2007. The empirical results show that there is long run steady-state relationship between working capital and profitability. However, the short run causal relationship runs from working capital to profitability suggesting that inefficient working capital management may harm profitability.
文摘The present study investigated the effect of working capital management component on corporate profitability. A sample of 106 firms listed on Borsa Istanbul Stock Exchange (BIST) for the period of 2003-2013 was used. The secondary data for analysis were taken from Bloomberg's Database. The present study aims to explore the effect of working capital management components on corporate profitability. We observed that there was a negative correlation between gross operating profit and accounts receivables (A/R). We also found that there was a positive correlation between gross operating profit and number of days inventory. But they did not affect the profitability of firms in the study at a significant level.
文摘Efficient working capital management is an integral component of the overall corporate strategy to create shareholders' wealth. This paper seeks to extend findings regarding the relationship between working capital management and profitability. A sample of 69 companies listed on the Johannesburg Stock Exchange (JSE) for the period from 1998 to 2008 was selected. The results revealed a statistically significant negative relationship among profitability (as measured through gross operating profit), the cash conversion cycle (CCC), and number of days accounts receivable (AR). The results also revealed a positive and significant relationship among profitability, the number of days accounts payable (AP), and the number of days inventory (INV). The results suggested that managers could increase their company's profitability by effectively managing the CCC and its components.