The working capital management on the firms' financial performance with the moderating effect of the effectiveness of management policies: evidence from manufacturing companies listed in Colombo Stock Exchange
The working capital management on the firms' financial performance with the moderating effect of...
Dissanayake, Sulochana; Jayathunga, Shanika; Madushan, A.M.T.
2022-01-01 00:00:00
Few studies have found a moderating effect between working capital management and a firm's financial performance. Due to limited literature and contradictions, this study aims to emphasise the association between working capital management and a firm's financial performance with the moderating effect of management policies using evidence from manufacturing companies listed on the Colombo Stock Exchange from 2014 to 2018. According to Iqbal et al. (2014), 28 manufacturing companies were selected using convenience sampling. This study adopted the quantitative research methodology and used correlation and regression analysis. The results show that a firm's cash conversion cycle affects its return on assets and net profit margin. Effective management policies in terms of inventory age, collection period, and payment period strengthen the relationship between working capital management and firm's financial performance. This study will help financial analysts and managers achieve their goals.
http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.pngAmerican Journal of Finance and AccountingInderscience Publishershttp://www.deepdyve.com/lp/inderscience-publishers/the-working-capital-management-on-the-firms-financial-performance-with-DsacLM0o60
The working capital management on the firms' financial performance with the moderating effect of the effectiveness of management policies: evidence from manufacturing companies listed in Colombo Stock Exchange
Few studies have found a moderating effect between working capital management and a firm's financial performance. Due to limited literature and contradictions, this study aims to emphasise the association between working capital management and a firm's financial performance with the moderating effect of management policies using evidence from manufacturing companies listed on the Colombo Stock Exchange from 2014 to 2018. According to Iqbal et al. (2014), 28 manufacturing companies were selected using convenience sampling. This study adopted the quantitative research methodology and used correlation and regression analysis. The results show that a firm's cash conversion cycle affects its return on assets and net profit margin. Effective management policies in terms of inventory age, collection period, and payment period strengthen the relationship between working capital management and firm's financial performance. This study will help financial analysts and managers achieve their goals.
Journal
American Journal of Finance and Accounting
– Inderscience Publishers
To get new article updates from a journal on your personalized homepage, please log in first, or sign up for a DeepDyve account if you don’t already have one.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.