VGU RESEARCH REPOSITORY
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https://epub.vgu.edu.vn/handle/dlibvgu/1669
Title: | Impact of working capital management on firm's profitability an empirical study on Vietnamese listed firms | Authors: | Nguyen Hoang Hai | Keywords: | Capital management;Firm profitability | Issue Date: | 2023 | Abstract: | Working capital is a major source of finance to firms, and proficient management of working capital would significantly contribute to the sustainable development of the companies. This study focuses on examining the relationship between working capital management, as assessed by working capital efficiency, and the profitability of Vietnamese firms. Using a sample of 604 companies listed on the Vietnamese Stock Market from 2001 to 2019, with quantitative research methodologies such as fixed effect and random effect regression on panel data, the research provides empirical evidence for the following noticeable results. The components of working capital efficiency including accounts receivable days, inventory days, accounts payable days and cash conversion cycle, are proven to have statistically significant and negative relationships toward the firms’ profitability measured by gross profit margin. Furthermore, based on the findings, the study also gives advice to the financial managers of Vietnamese firms on applying the appropriate working capital policies to maintain profitability as well as to avoid insolvency. That is firms should employ the moderate strategy when investing land financing working capital |
URI(1): | https://epub.vgu.edu.vn/handle/dlibvgu/1669 |
Appears in Collections: | Finance & Accounting (FA) |
Files in This Item:
File | Description | Size | Format | |
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Impact of working capital management on firm's profitability an empirical study on Vietnamese listed firms.pdf | 3.21 MB | Adobe PDF | View/Open |
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