Innovation's influence on working capital management and profitability: a Chinese high-tech manufacturing perspective

This study investigates the role of corporate innovation in moderating the impact of working capital management on profitability for a Chinese high-tech manufacturing industry. Using a two-way fixed effect model and subgroup analysis, we found that net working capital (NWC) negatively impacted corpo...

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Main Authors: Zhou, Siyu, Amin Noordin, Bany Ariffin, Tunde, Matemilola Bolaji
Format: Article
Published: John Wiley and Sons Inc 2024
Online Access:http://psasir.upm.edu.my/id/eprint/113940/
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author Zhou, Siyu
Amin Noordin, Bany Ariffin
Tunde, Matemilola Bolaji
author_facet Zhou, Siyu
Amin Noordin, Bany Ariffin
Tunde, Matemilola Bolaji
author_sort Zhou, Siyu
building UPM Institutional Repository
collection Online Access
description This study investigates the role of corporate innovation in moderating the impact of working capital management on profitability for a Chinese high-tech manufacturing industry. Using a two-way fixed effect model and subgroup analysis, we found that net working capital (NWC) negatively impacted corporate profitability, while corporate innovation magnified the inverse association between the NWC and profitability. This moderating effect was stronger in non-state-owned enterprises (SOEs) than in SOEs, and different company sizes exhibited varying effects. This study enhances our understanding of the role of corporate innovation financial management and provides valuable insights for innovation research in emerging economies.
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institution Universiti Putra Malaysia
institution_category Local University
last_indexed 2025-11-15T14:19:23Z
publishDate 2024
publisher John Wiley and Sons Inc
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spelling upm-1139402025-01-31T03:30:08Z http://psasir.upm.edu.my/id/eprint/113940/ Innovation's influence on working capital management and profitability: a Chinese high-tech manufacturing perspective Zhou, Siyu Amin Noordin, Bany Ariffin Tunde, Matemilola Bolaji This study investigates the role of corporate innovation in moderating the impact of working capital management on profitability for a Chinese high-tech manufacturing industry. Using a two-way fixed effect model and subgroup analysis, we found that net working capital (NWC) negatively impacted corporate profitability, while corporate innovation magnified the inverse association between the NWC and profitability. This moderating effect was stronger in non-state-owned enterprises (SOEs) than in SOEs, and different company sizes exhibited varying effects. This study enhances our understanding of the role of corporate innovation financial management and provides valuable insights for innovation research in emerging economies. John Wiley and Sons Inc 2024-08 Article PeerReviewed Zhou, Siyu and Amin Noordin, Bany Ariffin and Tunde, Matemilola Bolaji (2024) Innovation's influence on working capital management and profitability: a Chinese high-tech manufacturing perspective. Accounting and Finance. ISSN 0810-5391; eISSN: 1467-629X https://onlinelibrary.wiley.com/doi/10.1111/acfi.13315 10.1111/acfi.13315
spellingShingle Zhou, Siyu
Amin Noordin, Bany Ariffin
Tunde, Matemilola Bolaji
Innovation's influence on working capital management and profitability: a Chinese high-tech manufacturing perspective
title Innovation's influence on working capital management and profitability: a Chinese high-tech manufacturing perspective
title_full Innovation's influence on working capital management and profitability: a Chinese high-tech manufacturing perspective
title_fullStr Innovation's influence on working capital management and profitability: a Chinese high-tech manufacturing perspective
title_full_unstemmed Innovation's influence on working capital management and profitability: a Chinese high-tech manufacturing perspective
title_short Innovation's influence on working capital management and profitability: a Chinese high-tech manufacturing perspective
title_sort innovation's influence on working capital management and profitability: a chinese high-tech manufacturing perspective
url http://psasir.upm.edu.my/id/eprint/113940/
http://psasir.upm.edu.my/id/eprint/113940/
http://psasir.upm.edu.my/id/eprint/113940/