Investigating Relationship between Working Capital Management and Capital Structure

The main purpose of this paper is to investigate the relationship between working capital management and capital structure quantitatively. Many firms are facing financial deficit issues due to lack of working capital management. Debt policy decisions has been an important tool for the managers to ta...

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Main Authors: Abdussalam, Abdalla Geth, Mohd Ridzuan, Darun
Format: Article
Language:English
Published: Global Business Research 2018
Subjects:
Online Access:http://umpir.ump.edu.my/id/eprint/21647/
http://umpir.ump.edu.my/id/eprint/21647/1/Investigating%20Relationship%20between%20Working-fim-2018.pdf
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author Abdussalam, Abdalla Geth
Mohd Ridzuan, Darun
author_facet Abdussalam, Abdalla Geth
Mohd Ridzuan, Darun
author_sort Abdussalam, Abdalla Geth
building UMP Institutional Repository
collection Online Access
description The main purpose of this paper is to investigate the relationship between working capital management and capital structure quantitatively. Many firms are facing financial deficit issues due to lack of working capital management. Debt policy decisions has been an important tool for the managers to tackle with financial complexities. Quantitative research approach was followed in this paper using self-administered survey questionnaire. Top managers were selected as sample to obtain their views on the WCM components influencing capital structure decisions and the extent to which they felt that these had been considered as successful. The SMART-PLS (Partial Least Square) version 2.0 software was used for the analysis of the results. From the statistical findings it was found that working capital management play an important role in managing capital structure of Malaysian public listed firms. Managers must utilize the budget appropriately and control costs to set performance goals of the organization.
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spelling ump-216472018-07-18T04:06:40Z http://umpir.ump.edu.my/id/eprint/21647/ Investigating Relationship between Working Capital Management and Capital Structure Abdussalam, Abdalla Geth Mohd Ridzuan, Darun HD Industries. Land use. Labor The main purpose of this paper is to investigate the relationship between working capital management and capital structure quantitatively. Many firms are facing financial deficit issues due to lack of working capital management. Debt policy decisions has been an important tool for the managers to tackle with financial complexities. Quantitative research approach was followed in this paper using self-administered survey questionnaire. Top managers were selected as sample to obtain their views on the WCM components influencing capital structure decisions and the extent to which they felt that these had been considered as successful. The SMART-PLS (Partial Least Square) version 2.0 software was used for the analysis of the results. From the statistical findings it was found that working capital management play an important role in managing capital structure of Malaysian public listed firms. Managers must utilize the budget appropriately and control costs to set performance goals of the organization. Global Business Research 2018 Article PeerReviewed text en http://umpir.ump.edu.my/id/eprint/21647/1/Investigating%20Relationship%20between%20Working-fim-2018.pdf Abdussalam, Abdalla Geth and Mohd Ridzuan, Darun (2018) Investigating Relationship between Working Capital Management and Capital Structure. Journal of Emerging Issues in Economics, Finance and Banking (JEIEFB), 7 (1). pp. 2466-2478. ISSN 2306-367X. (Published) http://globalbizresearch.org/economics/journel_issues.php?journelId=39
spellingShingle HD Industries. Land use. Labor
Abdussalam, Abdalla Geth
Mohd Ridzuan, Darun
Investigating Relationship between Working Capital Management and Capital Structure
title Investigating Relationship between Working Capital Management and Capital Structure
title_full Investigating Relationship between Working Capital Management and Capital Structure
title_fullStr Investigating Relationship between Working Capital Management and Capital Structure
title_full_unstemmed Investigating Relationship between Working Capital Management and Capital Structure
title_short Investigating Relationship between Working Capital Management and Capital Structure
title_sort investigating relationship between working capital management and capital structure
topic HD Industries. Land use. Labor
url http://umpir.ump.edu.my/id/eprint/21647/
http://umpir.ump.edu.my/id/eprint/21647/
http://umpir.ump.edu.my/id/eprint/21647/1/Investigating%20Relationship%20between%20Working-fim-2018.pdf