Relationship between working capital management and profitability in Malaysian companies

Working capital management is a significant element in daily operation of a company. Working capital management had been a focus of various researchers and companies recently as it can be a guidance for financial manager in decision making so that every decision made can increase the value of the...

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Main Author: Lee, Meng Yee
Format: Final Year Project Report / IMRAD
Language:English
English
Published: Universiti Malaysia Sarawak, (UNIMAS) 2015
Subjects:
Online Access:http://ir.unimas.my/id/eprint/12316/
http://ir.unimas.my/id/eprint/12316/1/Lee.pdf
http://ir.unimas.my/id/eprint/12316/5/Lee%20full.pdf
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author Lee, Meng Yee
author_facet Lee, Meng Yee
author_sort Lee, Meng Yee
building UNIMAS Institutional Repository
collection Online Access
description Working capital management is a significant element in daily operation of a company. Working capital management had been a focus of various researchers and companies recently as it can be a guidance for financial manager in decision making so that every decision made can increase the value of the company. This study aim to investigate the effect of working capital management and profitability of Malaysian companies. In addition, this study also aim to investigate the relationship between working capital management and profitability. The sample size of this study is 80 listed companies from year 2009 until 2013. In order to fulfill the objective of this study, Pearson correlation coefficient, panel data analysis, Breusch test and Pagan Lagrangian Multiplier will be used. Based on the findings, there is a negative and significant relationship between number of days account receivable (ARD) and cash conversion cycle (CCC) with return on total assets (ROTA). However, number of days inventories (INV) and number of days account payable (AP) do not have significant relationship with return on total asset (ROTA).
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format Final Year Project Report / IMRAD
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institution Universiti Malaysia Sarawak
institution_category Local University
language English
English
last_indexed 2025-11-15T06:35:26Z
publishDate 2015
publisher Universiti Malaysia Sarawak, (UNIMAS)
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spelling unimas-123162024-02-13T02:18:22Z http://ir.unimas.my/id/eprint/12316/ Relationship between working capital management and profitability in Malaysian companies Lee, Meng Yee HB Economic Theory Working capital management is a significant element in daily operation of a company. Working capital management had been a focus of various researchers and companies recently as it can be a guidance for financial manager in decision making so that every decision made can increase the value of the company. This study aim to investigate the effect of working capital management and profitability of Malaysian companies. In addition, this study also aim to investigate the relationship between working capital management and profitability. The sample size of this study is 80 listed companies from year 2009 until 2013. In order to fulfill the objective of this study, Pearson correlation coefficient, panel data analysis, Breusch test and Pagan Lagrangian Multiplier will be used. Based on the findings, there is a negative and significant relationship between number of days account receivable (ARD) and cash conversion cycle (CCC) with return on total assets (ROTA). However, number of days inventories (INV) and number of days account payable (AP) do not have significant relationship with return on total asset (ROTA). Universiti Malaysia Sarawak, (UNIMAS) 2015 Final Year Project Report / IMRAD NonPeerReviewed text en http://ir.unimas.my/id/eprint/12316/1/Lee.pdf text en http://ir.unimas.my/id/eprint/12316/5/Lee%20full.pdf Lee, Meng Yee (2015) Relationship between working capital management and profitability in Malaysian companies. [Final Year Project Report / IMRAD] (Unpublished)
spellingShingle HB Economic Theory
Lee, Meng Yee
Relationship between working capital management and profitability in Malaysian companies
title Relationship between working capital management and profitability in Malaysian companies
title_full Relationship between working capital management and profitability in Malaysian companies
title_fullStr Relationship between working capital management and profitability in Malaysian companies
title_full_unstemmed Relationship between working capital management and profitability in Malaysian companies
title_short Relationship between working capital management and profitability in Malaysian companies
title_sort relationship between working capital management and profitability in malaysian companies
topic HB Economic Theory
url http://ir.unimas.my/id/eprint/12316/
http://ir.unimas.my/id/eprint/12316/1/Lee.pdf
http://ir.unimas.my/id/eprint/12316/5/Lee%20full.pdf