Working capital management and firm profitability during and after the economic crisis among Malaysian listed companies

Working capital management and firm profitability during and after the economic crisis among Malaysian listed companies

The aim of the study is to explore the working capital management components and examine their relationship with firm profitability among Malaysia listed companies during and after the global financial crisis of 2008-2009. Based on the descriptive results, Malaysian firms practice conservative worki...

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Main Author: Kademi, Tasiu Tijjani
Format: Thesis
Language:eng
eng
Published: 2014
Subjects:
HF5001-6182 Business
HG Finance
Online Access:https://etd.uum.edu.my/4665/1/s815032.pdf
https://etd.uum.edu.my/4665/7/s815032_abstract.pdf
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id my-uum-etd.4665
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Lode, Nor Asma
topic HF5001-6182 Business
HG Finance
spellingShingle HF5001-6182 Business
HG Finance
Kademi, Tasiu Tijjani
Working capital management and firm profitability during and after the economic crisis among Malaysian listed companies
description The aim of the study is to explore the working capital management components and examine their relationship with firm profitability among Malaysia listed companies during and after the global financial crisis of 2008-2009. Based on the descriptive results, Malaysian firms practice conservative working capital management techniques due to the fact that current ratio is high and debt ratio is low compared with prior studies.The multiple regression analysis on the 260 listed Bursa Malaysia companies shows a negative relationship between working capital management components (i.e. average collection period and average payment period) and firm profitability during and after the crisis periods. Moreover, cash conversion cycle negatively relates with firm profitability after the crisis. Inventory turnover days indicate a positive and significant relation with firm profitability during the crisis period. These findings suggest that Malaysian firms should try and collects cash from customers faster, pay bills as soon as possible and minimise the gap between initial investment and the time cash is collected from customers during both crisis and noncrisis periods. Nevertheless, management should maintain considerable level of stock to avoid shortage and supply interruption during the crisis
format Thesis
qualification_name other
qualification_level Master's degree
author Kademi, Tasiu Tijjani
author_facet Kademi, Tasiu Tijjani
author_sort Kademi, Tasiu Tijjani
title Working capital management and firm profitability during and after the economic crisis among Malaysian listed companies
title_short Working capital management and firm profitability during and after the economic crisis among Malaysian listed companies
title_full Working capital management and firm profitability during and after the economic crisis among Malaysian listed companies
title_fullStr Working capital management and firm profitability during and after the economic crisis among Malaysian listed companies
title_full_unstemmed Working capital management and firm profitability during and after the economic crisis among Malaysian listed companies
title_sort working capital management and firm profitability during and after the economic crisis among malaysian listed companies
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2014
url https://etd.uum.edu.my/4665/1/s815032.pdf
https://etd.uum.edu.my/4665/7/s815032_abstract.pdf
_version_ 1747827776556105728
spelling my-uum-etd.46652022-05-23T02:02:39Z Working capital management and firm profitability during and after the economic crisis among Malaysian listed companies 2014 Kademi, Tasiu Tijjani Lode, Nor Asma Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HF5001-6182 Business HG Finance The aim of the study is to explore the working capital management components and examine their relationship with firm profitability among Malaysia listed companies during and after the global financial crisis of 2008-2009. Based on the descriptive results, Malaysian firms practice conservative working capital management techniques due to the fact that current ratio is high and debt ratio is low compared with prior studies.The multiple regression analysis on the 260 listed Bursa Malaysia companies shows a negative relationship between working capital management components (i.e. average collection period and average payment period) and firm profitability during and after the crisis periods. Moreover, cash conversion cycle negatively relates with firm profitability after the crisis. Inventory turnover days indicate a positive and significant relation with firm profitability during the crisis period. These findings suggest that Malaysian firms should try and collects cash from customers faster, pay bills as soon as possible and minimise the gap between initial investment and the time cash is collected from customers during both crisis and noncrisis periods. Nevertheless, management should maintain considerable level of stock to avoid shortage and supply interruption during the crisis 2014 Thesis https://etd.uum.edu.my/4665/ https://etd.uum.edu.my/4665/1/s815032.pdf text eng public https://etd.uum.edu.my/4665/7/s815032_abstract.pdf text eng public other masters Universiti Utara Malaysia Abidin, M. Z., & Rasiah, R. (2009). The global financial crisis and the malaysian economy: relation and responses. United Nations Development Programme (UNDP), Malaysia. 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. Ahmadi, M., Arasi, I. S., Garajafary, M., & Branch, A. (2012). Studying the relationship between working capital management and profitability at Tehran stock exchange: A case study of food industry. Research Journal of Applied Sciences, Engineering and Technology, 4(13), 1868-1874. Ahmadpour, A., Zare, M. 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