Impact of working capital management on growth of Malaysia companies: An empirical investigation of public listed companies

Impact of working capital management on growth of Malaysia companies: An empirical investigation of public listed companies

Working capital management has always drawn the attention of the corporate sectors. Public listed companies particularly place strong emphasis on an effective and efficient working capital management for their survival and growth. Its contribution is not only on profitability, but also in determinin...

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Main Author: Syed Fairul Afis, Syed Mustapha
Format: Thesis
Language:eng
eng
Published: 2015
Subjects:
HG Finance
Online Access:https://etd.uum.edu.my/4594/1/s811118.pdf
https://etd.uum.edu.my/4594/2/s811118_abstract.pdf
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id my-uum-etd.4594
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Ahmad, Norafifah
topic HG Finance
spellingShingle HG Finance
Syed Fairul Afis, Syed Mustapha
Impact of working capital management on growth of Malaysia companies: An empirical investigation of public listed companies
description Working capital management has always drawn the attention of the corporate sectors. Public listed companies particularly place strong emphasis on an effective and efficient working capital management for their survival and growth. Its contribution is not only on profitability, but also in determining the liquidity of assets to offset current obligations. This study analyses and measures the relationship between working capital management and growth of public listed companies in Malaysia. Specifically, the study examines the relationships between the four components of working capital management, namely, cash conversion cycle, receivable conversion period, inventory conversion period, payable conversion period and the growth of Malaysian publicly listed companies. The study utilizes the financial historical data obtained from the DataStream from December 2009 to December 2013. The one hundred top public-listed companies main (based on market capitalization) in the Main Board of Bursa Malaysia are selected as a sample. The testing for hypotheses involved examining the relationship between the dependent variable (growth of Malaysia companies) and the independent variables (cash conversion cycle, receivable conversion period, inventory conversion period, and payable conversion period). Analysis shows that all the independent variables have positive relationships with firm growth, but only cash conversion cycle has a significant relationship. It is concluded that companies should focus and establish the policy of working capital management in an efficient manner to serve their shareholders in maximizing their wealth.
format Thesis
qualification_name masters
qualification_level Master's degree
author Syed Fairul Afis, Syed Mustapha
author_facet Syed Fairul Afis, Syed Mustapha
author_sort Syed Fairul Afis, Syed Mustapha
title Impact of working capital management on growth of Malaysia companies: An empirical investigation of public listed companies
title_short Impact of working capital management on growth of Malaysia companies: An empirical investigation of public listed companies
title_full Impact of working capital management on growth of Malaysia companies: An empirical investigation of public listed companies
title_fullStr Impact of working capital management on growth of Malaysia companies: An empirical investigation of public listed companies
title_full_unstemmed Impact of working capital management on growth of Malaysia companies: An empirical investigation of public listed companies
title_sort impact of working capital management on growth of malaysia companies: an empirical investigation of public listed companies
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2015
url https://etd.uum.edu.my/4594/1/s811118.pdf
https://etd.uum.edu.my/4594/2/s811118_abstract.pdf
_version_ 1747827761339170816
spelling my-uum-etd.45942021-04-05T01:30:39Z Impact of working capital management on growth of Malaysia companies: An empirical investigation of public listed companies 2015 Syed Fairul Afis, Syed Mustapha Ahmad, Norafifah Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance Working capital management has always drawn the attention of the corporate sectors. Public listed companies particularly place strong emphasis on an effective and efficient working capital management for their survival and growth. Its contribution is not only on profitability, but also in determining the liquidity of assets to offset current obligations. This study analyses and measures the relationship between working capital management and growth of public listed companies in Malaysia. Specifically, the study examines the relationships between the four components of working capital management, namely, cash conversion cycle, receivable conversion period, inventory conversion period, payable conversion period and the growth of Malaysian publicly listed companies. The study utilizes the financial historical data obtained from the DataStream from December 2009 to December 2013. The one hundred top public-listed companies main (based on market capitalization) in the Main Board of Bursa Malaysia are selected as a sample. The testing for hypotheses involved examining the relationship between the dependent variable (growth of Malaysia companies) and the independent variables (cash conversion cycle, receivable conversion period, inventory conversion period, and payable conversion period). Analysis shows that all the independent variables have positive relationships with firm growth, but only cash conversion cycle has a significant relationship. It is concluded that companies should focus and establish the policy of working capital management in an efficient manner to serve their shareholders in maximizing their wealth. 2015 Thesis https://etd.uum.edu.my/4594/ https://etd.uum.edu.my/4594/1/s811118.pdf text eng public https://etd.uum.edu.my/4594/2/s811118_abstract.pdf text eng public masters masters Universiti Utara Malaysia Abu Bakar, A. H., A. Awang, M. N. Yusof & A. Adam (2011). Strategies for survival during economic downturn in construction industry: A survey on construction companies in Malaysia. World Applied Sciences Journal, 13(9), 1967- 1974. Abu Bakar, A. H, Tabassi, A. A., Abd Razak, A., & Yusof, M. N. (2012). Key factors contributing to growth of construction companies: A Malaysian experience. World Applied Sciences Journal 19 (9), 1295-1304. Abuzayed, B. (2012). Working capital management and firms’ performance in emerging markets: The case of Jordan. International Journal of Managerial Finance, 8(2), 155-179. 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