The impact of working capital management on firms performance in the manufacturing sectors of Pakistan

The working capital management has an important role for a firm’s success or failure because of its effect on firm’s performance and liquidity. This study is based on secondary data collected from 294 manufacturing firms listed on Karachi Stock Exchange Market for the period 2001-2012, to investigat...

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Main Author:	Tahir, Mohammad
Format:	Thesis
Language:	English
Published:	2016
Subjects:	HD30.213 Management information systems Decision support systems
Online Access:	http://eprints.utm.my/id/eprint/78212/1/MohammadTahirPFM2016.pdf
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id	my-utm-ep.78212
record_format	uketd_dc
spelling	my-utm-ep.782122018-07-30T08:39:38Z The impact of working capital management on firms performance in the manufacturing sectors of Pakistan 2016-01 Tahir, Mohammad HD30.213 Management information systems. Decision support systems The working capital management has an important role for a firm’s success or failure because of its effect on firm’s performance and liquidity. This study is based on secondary data collected from 294 manufacturing firms listed on Karachi Stock Exchange Market for the period 2001-2012, to investigate the relationship between working capital management components and performance of the firms by using panel data analysis and generalized method of moments (GMM). The study applied analysis of variance (ANOVA) test in order to explore any differences across sectors in Pakistan. The study used four firms’ performance measures as dependent variables which include return on assets (ROA), net profitability margin (NPM), firms growth (FG) and Tobin Q. The working capital measures include cash conversion cycle (CCC), net trade cycle (NTC), current ratio (CR) and current assets to total assets ratio (CATAR). The study also used control variables such as size of the firm (LOS), firms age (FAGE), financial debt ratio (FDR), inflation (INF) and gross domestic product (GDP). The results revealed that CCC, CATAR, LOS, FAGE, FDR, INF and GDP are positive significant determinants of firm’s performance in Pakistan. In contrast, NTC is negative significant determinant of firm’s performance. Moreover, the results of ANOVA depicted that there is a significant difference among three working capital measures (CCC, NTC and CATAR) and firm’s performance on sectoral basis. In conclusion, the study proved that working capital measures have significant role on firm’s performance and there is a significant difference among their effects on sectoral basis, as an efficient working capital management leads to success in the performance of manufacturing sectors of Pakistan. 2016-01 Thesis http://eprints.utm.my/id/eprint/78212/ http://eprints.utm.my/id/eprint/78212/1/MohammadTahirPFM2016.pdf application/pdf en public http://dms.library.utm.my:8080/vital/access/manager/Repository/vital:97430 phd doctoral Universiti Teknologi Malaysia, Faculty of Management Faculty of Management
institution	Universiti Teknologi Malaysia
collection	UTM Institutional Repository
language	English
topic	HD30.213 Management information systems Decision support systems
spellingShingle	HD30.213 Management information systems Decision support systems Tahir, Mohammad The impact of working capital management on firms performance in the manufacturing sectors of Pakistan
description	The working capital management has an important role for a firm’s success or failure because of its effect on firm’s performance and liquidity. This study is based on secondary data collected from 294 manufacturing firms listed on Karachi Stock Exchange Market for the period 2001-2012, to investigate the relationship between working capital management components and performance of the firms by using panel data analysis and generalized method of moments (GMM). The study applied analysis of variance (ANOVA) test in order to explore any differences across sectors in Pakistan. The study used four firms’ performance measures as dependent variables which include return on assets (ROA), net profitability margin (NPM), firms growth (FG) and Tobin Q. The working capital measures include cash conversion cycle (CCC), net trade cycle (NTC), current ratio (CR) and current assets to total assets ratio (CATAR). The study also used control variables such as size of the firm (LOS), firms age (FAGE), financial debt ratio (FDR), inflation (INF) and gross domestic product (GDP). The results revealed that CCC, CATAR, LOS, FAGE, FDR, INF and GDP are positive significant determinants of firm’s performance in Pakistan. In contrast, NTC is negative significant determinant of firm’s performance. Moreover, the results of ANOVA depicted that there is a significant difference among three working capital measures (CCC, NTC and CATAR) and firm’s performance on sectoral basis. In conclusion, the study proved that working capital measures have significant role on firm’s performance and there is a significant difference among their effects on sectoral basis, as an efficient working capital management leads to success in the performance of manufacturing sectors of Pakistan.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Tahir, Mohammad
author_facet	Tahir, Mohammad
author_sort	Tahir, Mohammad
title	The impact of working capital management on firms performance in the manufacturing sectors of Pakistan
title_short	The impact of working capital management on firms performance in the manufacturing sectors of Pakistan
title_full	The impact of working capital management on firms performance in the manufacturing sectors of Pakistan
title_fullStr	The impact of working capital management on firms performance in the manufacturing sectors of Pakistan
title_full_unstemmed	The impact of working capital management on firms performance in the manufacturing sectors of Pakistan
title_sort	impact of working capital management on firms performance in the manufacturing sectors of pakistan
granting_institution	Universiti Teknologi Malaysia, Faculty of Management
granting_department	Faculty of Management
publishDate	2016
url	http://eprints.utm.my/id/eprint/78212/1/MohammadTahirPFM2016.pdf
_version_	1747817934484406272

The impact of working capital management on firms performance in the manufacturing sectors of Pakistan

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