The effect of working capital management on profitability of electronic and electrical equipment firms / Asma Nabihah Mohd Arshad

Working capital management (WCM) is crucial part in business yet this aspect is getting little attention of researchers. However, WCM is able to grab the attention of the researchers after financial crisis 2008. Capital budgeting, capital structure and dividends are the examples of traditional focus...

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Main Author:	Mohd Arshad, Asma Nabihah
Format:	Thesis
Language:	English
Published:	2017
Subjects:	Working capital
Online Access:	https://ir.uitm.edu.my/id/eprint/94765/1/94765.pdf
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id	my-uitm-ir.94765
record_format	uketd_dc
spelling	my-uitm-ir.947652024-05-30T15:08:23Z The effect of working capital management on profitability of electronic and electrical equipment firms / Asma Nabihah Mohd Arshad 2017-12 Mohd Arshad, Asma Nabihah Working capital Working capital management (WCM) is crucial part in business yet this aspect is getting little attention of researchers. However, WCM is able to grab the attention of the researchers after financial crisis 2008. Capital budgeting, capital structure and dividends are the examples of traditional focus of corporate finance that involving long term financial decisions. WCM involved the management of current asset and current liabilities of firm. WCM is important as poor management of working capital lead to liquidity problem. This study investigates the relationship between WCM and profitability of electric and electronic equipment firms in Malaysia by using panel regressions. Electrical and electronic is one of the main exports of Malaysia. The firms must be able to manage their financing efficiently. This study using six companies listed in Bursa Malaysia for the period of 10 years which are from 2007 to 2016. The financial data of each company are obtained from Bursa Malaysia as it provides a reliable data of the companies. The dependent variable used in this study is return on asset (ROA) to measure the profitability while the independent variables are cash conversion cycle (CCC), current asset to total asset ratio (CATAR), current liabilities to total asset ratio (CLTAR), current ratio (CR) and debt ratio (DR). From the study, it revealed that CATAR, CLTAR and CR are significant with ROA while CCC and DR are not significant with ROA. CLTAR and CR are negative and significant with ROA while CATAR is significant and positive with ROA. It means that CATAR, CLTAR and CR give significant impact to ROA. 2017-12 Thesis https://ir.uitm.edu.my/id/eprint/94765/ https://ir.uitm.edu.my/id/eprint/94765/1/94765.pdf text en public degree Universiti Teknologi MARA, Johor Bachelor of Business Administration (HONS) Finance Johan, Nurul Haida
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Johan, Nurul Haida
topic	Working capital
spellingShingle	Working capital Mohd Arshad, Asma Nabihah The effect of working capital management on profitability of electronic and electrical equipment firms / Asma Nabihah Mohd Arshad
description	Working capital management (WCM) is crucial part in business yet this aspect is getting little attention of researchers. However, WCM is able to grab the attention of the researchers after financial crisis 2008. Capital budgeting, capital structure and dividends are the examples of traditional focus of corporate finance that involving long term financial decisions. WCM involved the management of current asset and current liabilities of firm. WCM is important as poor management of working capital lead to liquidity problem. This study investigates the relationship between WCM and profitability of electric and electronic equipment firms in Malaysia by using panel regressions. Electrical and electronic is one of the main exports of Malaysia. The firms must be able to manage their financing efficiently. This study using six companies listed in Bursa Malaysia for the period of 10 years which are from 2007 to 2016. The financial data of each company are obtained from Bursa Malaysia as it provides a reliable data of the companies. The dependent variable used in this study is return on asset (ROA) to measure the profitability while the independent variables are cash conversion cycle (CCC), current asset to total asset ratio (CATAR), current liabilities to total asset ratio (CLTAR), current ratio (CR) and debt ratio (DR). From the study, it revealed that CATAR, CLTAR and CR are significant with ROA while CCC and DR are not significant with ROA. CLTAR and CR are negative and significant with ROA while CATAR is significant and positive with ROA. It means that CATAR, CLTAR and CR give significant impact to ROA.
format	Thesis
qualification_level	Bachelor degree
author	Mohd Arshad, Asma Nabihah
author_facet	Mohd Arshad, Asma Nabihah
author_sort	Mohd Arshad, Asma Nabihah
title	The effect of working capital management on profitability of electronic and electrical equipment firms / Asma Nabihah Mohd Arshad
title_short	The effect of working capital management on profitability of electronic and electrical equipment firms / Asma Nabihah Mohd Arshad
title_full	The effect of working capital management on profitability of electronic and electrical equipment firms / Asma Nabihah Mohd Arshad
title_fullStr	The effect of working capital management on profitability of electronic and electrical equipment firms / Asma Nabihah Mohd Arshad
title_full_unstemmed	The effect of working capital management on profitability of electronic and electrical equipment firms / Asma Nabihah Mohd Arshad
title_sort	effect of working capital management on profitability of electronic and electrical equipment firms / asma nabihah mohd arshad
granting_institution	Universiti Teknologi MARA, Johor
granting_department	Bachelor of Business Administration (HONS) Finance
publishDate	2017
url	https://ir.uitm.edu.my/id/eprint/94765/1/94765.pdf
_version_	1804889937520099328

The effect of working capital management on profitability of electronic and electrical equipment firms / Asma Nabihah Mohd Arshad

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