This document summarizes a research study on the relationship between working capital management and profitability among Indian manufacturing firms. The study uses financial data from 1,198 manufacturing firms over a 5-year period. The study aims to analyze how variables affecting working capital management influence firm profitability. Specifically, it examines the impact of days of debtors, days of inventory, days of creditors, and cash conversion cycle on profitability. The results of the study provide insights for Indian manufacturing firms on managing working capital to improve profitability.
This document summarizes a study that investigates the influence of working capital management on the performance of small and medium enterprises (SMEs) in Pakistan from 2006 to 2012. The study uses data from various sources on SMEs to examine the relationship between return on assets (used as a proxy for profitability) and variables like accounts receivable, inventory, cash conversion cycle, and accounts payable. The results suggest that days of accounts payable has a positive association with profitability, while average collection period, inventory turnover, and cash conversion cycle have an inverse relationship with performance. Firm size and sales growth also positively influence profitability, while debt ratio negatively impacts profitability.
Effect of working capital on profitability in indian markets and concept of z...mvkdel
This document provides an analysis of the relationship between working capital management and profitability for Indian companies from 2005-2010. It discusses key concepts around working capital, including how it refers to current assets and liabilities required for short-term financing. Prior research has shown that both excessive and low levels of working capital can negatively impact profitability. The document reviews literature on working capital management and profitability relationships. It aims to contribute to understanding how working capital management impacts profitability to help managers make decisions that create shareholder value, especially in emerging markets like India.
This document discusses a study on working capital management practices of small scale enterprises in Ghana's Central Region. The study found that 38% of small businesses received an average of 2 weeks to 1 month of credit from suppliers. Small businesses provided credit periods of less than 1 month to 60 days to customers. The main challenges with customer credit were late payments and bad debts. Half of businesses used notebooks for inventory tracking while 57% had business bank accounts. Personal savings made up 60% of startup capital on average. The document recommends increased collaboration between business advisory centers and small business associations to improve financial training as well as expanded record keeping support.
A FINANCIAL STATEMENT USING RATIO ANALYSIS AT MAHINDRA AND MAHINDRA LTDMurali RN
Accounting serves to provide financial information to various stakeholders through three categories: financial accounting, cost accounting, and management accounting. Financial accounting records business transactions and presents financial statements including the profit and loss account and balance sheet. Cost accounting provides detailed cost information for internal management use. Management accounting assists management with planning, decision-making, and control by using techniques like budgeting, variance analysis, and ratio analysis that draw from financial and cost accounting information. It aims to optimize profit through tools and analysis of both past financial data and future projections.
This document summarizes a research study that examined the relationship between working capital management and profitability for non-listed firms in Ghana from 2004-2009. The study used cash conversion cycles and its components (days of receivables, days of inventory, and days of payables) as measures of working capital management. Gross operating profit to total assets was used as the measure of firm performance. The results showed that profitability was negatively related to the length of the cash conversion cycle. Specifically, performance was positively affected by reducing days of receivables and days of inventory. Additionally, firm size, GDP growth, and sales growth positively impacted performance. The study suggests that managers in emerging markets should focus on effective working capital management to improve
This document summarizes a research paper that examines trends in working capital management and its impact on the performance of small manufacturing firms in Mauritius. It discusses how working capital management is important for business liquidity and profitability. The paper aims to analyze the relationship between working capital metrics like inventory days, receivables days, payables days, and cash conversion cycle on the profitability of 58 small manufacturing firms in Mauritius from 1998-2003. Specifically, it finds that higher investment in inventory and receivables is associated with lower profitability.
Impact of working capital on firm profitabilityWaqas Mehmood
This document analyzes the impact of working capital management on the profitability of sugar and leather firms in Pakistan. It examines secondary data from 5 sugar and 5 leather firms over 2008-2012. The key variables studied are cash conversion cycle, interest coverage ratio, debt-equity ratio, age of inventory, age of debtors, age of creditors, and return on assets. The study aims to determine if there is a significant relationship between working capital management and firm profitability. The results could help managers optimize working capital levels to improve financial performance.
This document analyzes the effect of financial performance on stock prices of raw material producing companies listed on the Indonesian Stock Exchange from 2009-2013. It finds that variables like current ratio, debt to equity ratio, return on assets, and total asset turnover have a simultaneous significant effect on stock prices. However, in partial tests only total asset turnover is found to have an individually significant impact, while the other variables do not. The study uses multiple linear regression analysis on financial data from 7 sample companies to analyze the relationships between these financial metrics and stock price movements.
This document summarizes a study that investigates the influence of working capital management on the performance of small and medium enterprises (SMEs) in Pakistan from 2006 to 2012. The study uses data from various sources on SMEs to examine the relationship between return on assets (used as a proxy for profitability) and variables like accounts receivable, inventory, cash conversion cycle, and accounts payable. The results suggest that days of accounts payable has a positive association with profitability, while average collection period, inventory turnover, and cash conversion cycle have an inverse relationship with performance. Firm size and sales growth also positively influence profitability, while debt ratio negatively impacts profitability.
Effect of working capital on profitability in indian markets and concept of z...mvkdel
This document provides an analysis of the relationship between working capital management and profitability for Indian companies from 2005-2010. It discusses key concepts around working capital, including how it refers to current assets and liabilities required for short-term financing. Prior research has shown that both excessive and low levels of working capital can negatively impact profitability. The document reviews literature on working capital management and profitability relationships. It aims to contribute to understanding how working capital management impacts profitability to help managers make decisions that create shareholder value, especially in emerging markets like India.
This document discusses a study on working capital management practices of small scale enterprises in Ghana's Central Region. The study found that 38% of small businesses received an average of 2 weeks to 1 month of credit from suppliers. Small businesses provided credit periods of less than 1 month to 60 days to customers. The main challenges with customer credit were late payments and bad debts. Half of businesses used notebooks for inventory tracking while 57% had business bank accounts. Personal savings made up 60% of startup capital on average. The document recommends increased collaboration between business advisory centers and small business associations to improve financial training as well as expanded record keeping support.
A FINANCIAL STATEMENT USING RATIO ANALYSIS AT MAHINDRA AND MAHINDRA LTDMurali RN
Accounting serves to provide financial information to various stakeholders through three categories: financial accounting, cost accounting, and management accounting. Financial accounting records business transactions and presents financial statements including the profit and loss account and balance sheet. Cost accounting provides detailed cost information for internal management use. Management accounting assists management with planning, decision-making, and control by using techniques like budgeting, variance analysis, and ratio analysis that draw from financial and cost accounting information. It aims to optimize profit through tools and analysis of both past financial data and future projections.
This document summarizes a research study that examined the relationship between working capital management and profitability for non-listed firms in Ghana from 2004-2009. The study used cash conversion cycles and its components (days of receivables, days of inventory, and days of payables) as measures of working capital management. Gross operating profit to total assets was used as the measure of firm performance. The results showed that profitability was negatively related to the length of the cash conversion cycle. Specifically, performance was positively affected by reducing days of receivables and days of inventory. Additionally, firm size, GDP growth, and sales growth positively impacted performance. The study suggests that managers in emerging markets should focus on effective working capital management to improve
This document summarizes a research paper that examines trends in working capital management and its impact on the performance of small manufacturing firms in Mauritius. It discusses how working capital management is important for business liquidity and profitability. The paper aims to analyze the relationship between working capital metrics like inventory days, receivables days, payables days, and cash conversion cycle on the profitability of 58 small manufacturing firms in Mauritius from 1998-2003. Specifically, it finds that higher investment in inventory and receivables is associated with lower profitability.
Impact of working capital on firm profitabilityWaqas Mehmood
This document analyzes the impact of working capital management on the profitability of sugar and leather firms in Pakistan. It examines secondary data from 5 sugar and 5 leather firms over 2008-2012. The key variables studied are cash conversion cycle, interest coverage ratio, debt-equity ratio, age of inventory, age of debtors, age of creditors, and return on assets. The study aims to determine if there is a significant relationship between working capital management and firm profitability. The results could help managers optimize working capital levels to improve financial performance.
This document analyzes the effect of financial performance on stock prices of raw material producing companies listed on the Indonesian Stock Exchange from 2009-2013. It finds that variables like current ratio, debt to equity ratio, return on assets, and total asset turnover have a simultaneous significant effect on stock prices. However, in partial tests only total asset turnover is found to have an individually significant impact, while the other variables do not. The study uses multiple linear regression analysis on financial data from 7 sample companies to analyze the relationships between these financial metrics and stock price movements.
This paper investigates the relationship between working capital management and financial performance of Pharmaceuticals and Textile firms listed at the Dhaka Securities Exchange in Bangladesh. The data analysis was carried on ten Pharmaceuticals and Textile firms for a period of 2013 to 2017. Secondary Data was analyzed by applying Descriptive Statistics, Regression and Correlation analysis to findthe relationship of current ratio, inventory conversion period and average payment period with Return on Asset. The findings indicate that the Pharmaceuticals and Textile firms’ performance is influenced by the variables relating to working capital. There is a positive relationship between profitability and current ratioand Inventory Turnover period shows a negative relationship with profitability but Average payment period shows insignificant impact on profitability. The study concludes that there exists a relationship between working capital managementand financial performance of Pharmaceuticals and Textile firms in Bangladesh. The study recommends that for the Pharmaceuticals and Textile firms to remain profitable, they should employ working capital management practice that will help in making decisions about investment mix and policy, matching investment to objective, asset allocation for institution and balancing risk against profitability.
The document analyzes the working capital of Wipro Limited over three fiscal years. It defines working capital and its components. It finds that Wipro's working capital and current ratio increased each year, indicating strong liquidity. While the working capital turnover ratio decreased slightly each year, it remained positive, showing efficient use of capital. In conclusion, Wipro managed its working capital well over this period to support profitability and meet obligations.
The Effect of Capital Structure on Profitability of Energy American Firms:inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Working Capital Management and Bank profitability in GhanaSamuel Agyei
This document examines the relationship between working capital management practices and profitability of banks in Ghana. It reviews previous empirical studies that have mostly found efficient working capital management, like reducing cash conversion cycles and accounts receivable periods, improves firm profitability. The study uses panel data and random effects techniques to analyze this relationship for Ghanaian banks. Preliminary findings contradict some prior studies by showing cash operating cycles and debtors collection periods positively relate to bank profitability, while creditors payment periods negatively relate to it. The study aims to inform bank managers and policymakers on effective working capital strategies.
Impact of working capital on profitabilityNuzzar Naseem
This document summarizes a research study that examined the impact of working capital management on the profitability of firms in Pakistan under different business cycles. The study found that cash conversion cycle and accounts receivable showed a negative relationship with firm profitability in different cycles. Inventory had a positive impact on profitability in boom periods. Accounts payable positively impacted profitability in recessions. The study concluded that efficient working capital management can increase firm profitability.
The document discusses earning management and earning response coefficients among manufacturing companies listed on the Indonesian Stock Exchange. It analyzes how profitability, leverage, company scale, manager bonuses, working capital composition, and manager ownership influence earning management and earning response coefficients. The study uses census and descriptive-verification methods, along with multiple regression analyses. The results show that the variables positively and significantly influence earning management and earning response coefficients both simultaneously and partially. Leverage has the strongest influence on earning management, while company scale most influences earning response coefficients.
An Empirical Analysis on the Nature of Relationship between Capital Structure...iosrjce
The financing decision with regard to capital structure theory of finance has been a topic of many
theories and their conflicting output for past many years. This paper aims to analyse the nature of relationship
between the capital structure of a firm and its performance. The data of 40 firms excluding financial services
firms listed on Nifty indices on National Stock Exchange is studied (The composition of 50 firms on Nifty
represents a well branch out index reflecting precisely the overall market conditions). Financial services firms
have been excluded from purview of this paper, as they are in the business of collecting money and investing in
financial assets rather than producing goods, hence follow a unique business valuation model. Further financial
services sector being one of the most sensitive sectors. This paper analyzes a period of 13 years (2001-2014)
covering the phases of a business cycle starting from boom (2001/02-2006/07), recession (2007/08-2008/09)
and then recovery (2009/10-2013/14). The complete business cycle will aid to demonstrate the results more
accurately. This paper also surveys the topical developments in the empirical capital structure research. The
data for a period of 13 years is analysed using descriptive statistics, correlation and multiple regression
techniques. For research purpose, the ratios such as debt-equity ratio, debt-asset ratio and long term debt are
taken as independent variables whereas Net Profit, Net Profit Margin, ROCE, ROE and ROA are the ratios
taken as dependent variables.
This paper proposed and tested the theoretical as well as the hypothesised model that
attempts to confirm whether the relevance of the practice of good corporate governance
influence corporate performance by adopting Return on Assets(ROA), Return on Capital
Employed(ROCE) or Economic Value Added(EVA) reporting which is important for
investment decision making and internal governance. The result of the study provided
important implications necessitating establishing the fact that the various corporate
governance mechanisms viz., board structure and activity, audit committee, shareholders’
rights, remuneration committee, nomination committee and disclosure practices influences the
economic value added for consistent internal governance and value creation for the Indian
companies. The implication of the study hinges upon how to achieve the above mentioned
priorities which is contributory to the advancement of knowledge and as a forethought
exploration in the area of corporate governance. The study shall enable the professional
bodies and Indian corporates to make considerable progress in raising awareness of the value
of good corporate governance by way of establishing relationship between corporate
governance and economic value added, an superior performance metric of reporting the
shareholder’s value creation.
Effect of Financial Ratios on Firm Performance Study of Selected Brewery Firm...ijtsrd
The study assessed the effect of financial ratios on performance of Quoted Breweries firms in Nigeria. It made use of ex post facto research design. Data were gotten from secondary sources obtained from NSE fact books and annual reports accounts of the selected Breweries Companies. The population of the study consisted of thirteen 13 quoted Breweries firms listed on the Nigerian Stock Exchange as at 31st December, 2018. Four 4 of the quoted Breweries firms are selected to form the sample of the study for the period of nine 9 years 2010 – 2018 . The relevant data obtained were subjected to statistical analysis using Pearson correlation coefficient and regression analysis. The results of this study revealed that there is a significant relationship between current ratio and firm performance but negative effect. Debt equity ratio has a significant effect on return on asset of Nigerian Breweries. The result of the study concludes that Nigerian breweries companies are relatively using an optimal mix of debt to equity which is evident from the significant positive relationship of debt equity ratio with financial performance of the Nigerian Breweries. The researchers recommended that the management should employ all carefulness while financing with long term debt instruments endeavor to find out the best and optimal combination of long term debt and equity that will impact positively on the value of the firm. Agbata, Amaka Elizabeth | Osingor, Arinze Stanley | Ezeala, George "Effect of Financial Ratios on Firm Performance: Study of Selected Brewery Firms in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-5 , August 2021, URL: https://www.ijtsrd.com/papers/ijtsrd45177.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/45177/effect-of-financial-ratios-on-firm-performance-study-of-selected-brewery-firms-in-nigeria/agbata-amaka-elizabeth
International Journal of Engineering Research and DevelopmentIJERD Editor
Electrical, Electronics and Computer Engineering,
Information Engineering and Technology,
Mechanical, Industrial and Manufacturing Engineering,
Automation and Mechatronics Engineering,
Material and Chemical Engineering,
Civil and Architecture Engineering,
Biotechnology and Bio Engineering,
Environmental Engineering,
Petroleum and Mining Engineering,
Marine and Agriculture engineering,
Aerospace Engineering.
The document discusses the impact of additional regulations on corporate collapses. It analyzes the advantages and disadvantages of introducing new regulations in response to corporate scandals. While additional regulations may increase accountability and prevent misconduct initially, they also motivate people to find ways around the laws, potentially resulting in more corporate failures. The best solution is a balanced approach combining necessary rules and guiding principles, focusing on ethics over just regulations. Introducing regulations without considering context or consequences is not an effective response.
Comparing Linear Accrual-Based Models in Predicting Earnings Management of Te...iosrjce
IOSR Journal of Business and Management (IOSR-JBM) is a double blind peer reviewed International Journal that provides rapid publication (within a month) of articles in all areas of business and managemant and its applications. The journal welcomes publications of high quality papers on theoretical developments and practical applications inbusiness and management. Original research papers, state-of-the-art reviews, and high quality technical notes are invited for publications.
Determinants of firms’ profitability in pakistanAlexander Decker
This document summarizes a research study that analyzed the determinants of profitability of Pakistani firms. The study examined the relationship between capital structure, financial leverage, firm size and corporate profitability. Data was collected from 50 Pakistani companies over 7 years. Regression analysis found a positive correlation between financial leverage and profitability, and between firm size and profitability. It found a negative correlation between capital structure and profitability. The study concluded additional variables could improve the model for determining corporate profitability.
A critical analysis of funds management in selected cement industries [www.wr...WriteKraft Dissertations
We started this Academic Writing Help in the year 2011.Writekraft Research & Publication: www.writekraft.com 1000s of students have graduated across the globe from our in-depth research.
We help students with the following services:
1. Thesis Writing (from 50 pages and above)
2. Dissertation writing
3. Research Writing for Publishing
4. Data Analysis
5. Research Proposal Writing
6. Study Plan
7. Plagiarism Report
Contact us at admin@writekraft.com OR call us on +917753818181, +919838033084
The charges are fair and we allow negotiations as per the student’s budget. You can also inbox me for more direction.
1. The document discusses ratio analysis and financial analysis. Ratio analysis is a tool that evaluates the financial position and performance of a firm by establishing relationships between financial statement items.
2. Financial analysis identifies the financial strengths and weaknesses of a firm. It is done by analyzing ratios calculated from a firm's balance sheet and income statement. Key ratios include liquidity ratios, profitability ratios, and leverage ratios.
3. Ratio analysis involves comparing a firm's ratios to standards like its own past ratios, competitor ratios, industry averages, and projected ratios. This allows users to evaluate the firm's financial stability, profitability, and efficiency over time.
Determinants of working capital management efficiencyAlexander Decker
This document summarizes a research study that examines the determinants of working capital management efficiency for automotive and engineering firms listed on the Karachi Stock Exchange in Pakistan. The study uses cash conversion cycle, days sales inventory, days payable outstanding, and days sales outstanding as explanatory variables to analyze quarterly panel data from 9 firms over 5 years. It also administers a questionnaire on Enterprise Resource Planning (ERP) systems. The study aims to determine the efficient factors of working capital management for these firms and investigate the relationships between working capital components and independent variables. It concludes that keeping the cash conversion cycle shortest through tight collection policies and liberal payment terms, along with efficient inventory management, can help firms keep working capital efficient.
This document summarizes a study that analyzed the effect of earnings per share (EPS), net profit margin (NPM), and debt to equity ratio (DER) on return on assets (ROA) of companies listed on the LQ45 index of the Indonesia Stock Exchange between 2014-2018. The study used quantitative methods including multiple linear regression to determine the relationships. The results found that EPS and NPM had a positive and significant effect on ROA, while DER had a negative and insignificant effect. Together the independent variables explained 99.34% of the variation in ROA.
Numerical modeling of reinforced soil segmental wall under surcharge loadingIAEME Publication
This document summarizes a numerical study of a reinforced soil segmental wall under surcharge loading. The study uses finite element analysis to model the wall's performance considering different parameters like backfill and foundation soil properties, reinforcement, and surcharge loading. Parametric analyses were conducted to understand the effects of soil stiffness, Poisson's ratio, and surcharge on the wall's deformation. Design charts were developed relating backfill and foundation stiffness to deformation limits to aid wall designers. The finite element software developed and validated was used to conduct the numerical analyses.
A survey on various architectures, models and methodologies for information r...IAEME Publication
This document discusses various architectures, models, and methodologies used in information retrieval. It describes query models, ranking models, and feedback models used by researchers. It also highlights the importance of using context-based queries to better understand a user's search intent. The document provides an extensive survey of different approaches used in information retrieval systems and how adding context can help improve search results.
Solving np hard problem using artificial bee colony algorithmIAEME Publication
The document presents an artificial bee colony (ABC) algorithm to solve the NP-hard shortest common supersequence problem. The ABC algorithm is inspired by the foraging behavior of honey bees. It represents solutions as food sources and uses employed, onlooker, and scout bees to explore the search space. The algorithm calculates character frequencies in input strings to guide random supersequence generation. Fitness is evaluated by comparing sequences using a modified merge algorithm. Results show the ABC approach finds near-optimal solutions compared to other algorithms for solving shortest common supersequences.
This document summarizes the seismic evaluation and retrofit assessment of an old hospital building in Srinagar, India. The hospital was constructed in 1889 and has experienced structural deterioration over time. The summary evaluates the building, finds it unsafe under seismic shear stresses, and recommends retrofit measures like adding seismic belts, grouting cracks, concrete jacketing of walls, and foundation strengthening to improve the building's seismic performance.
This paper investigates the relationship between working capital management and financial performance of Pharmaceuticals and Textile firms listed at the Dhaka Securities Exchange in Bangladesh. The data analysis was carried on ten Pharmaceuticals and Textile firms for a period of 2013 to 2017. Secondary Data was analyzed by applying Descriptive Statistics, Regression and Correlation analysis to findthe relationship of current ratio, inventory conversion period and average payment period with Return on Asset. The findings indicate that the Pharmaceuticals and Textile firms’ performance is influenced by the variables relating to working capital. There is a positive relationship between profitability and current ratioand Inventory Turnover period shows a negative relationship with profitability but Average payment period shows insignificant impact on profitability. The study concludes that there exists a relationship between working capital managementand financial performance of Pharmaceuticals and Textile firms in Bangladesh. The study recommends that for the Pharmaceuticals and Textile firms to remain profitable, they should employ working capital management practice that will help in making decisions about investment mix and policy, matching investment to objective, asset allocation for institution and balancing risk against profitability.
The document analyzes the working capital of Wipro Limited over three fiscal years. It defines working capital and its components. It finds that Wipro's working capital and current ratio increased each year, indicating strong liquidity. While the working capital turnover ratio decreased slightly each year, it remained positive, showing efficient use of capital. In conclusion, Wipro managed its working capital well over this period to support profitability and meet obligations.
The Effect of Capital Structure on Profitability of Energy American Firms:inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Working Capital Management and Bank profitability in GhanaSamuel Agyei
This document examines the relationship between working capital management practices and profitability of banks in Ghana. It reviews previous empirical studies that have mostly found efficient working capital management, like reducing cash conversion cycles and accounts receivable periods, improves firm profitability. The study uses panel data and random effects techniques to analyze this relationship for Ghanaian banks. Preliminary findings contradict some prior studies by showing cash operating cycles and debtors collection periods positively relate to bank profitability, while creditors payment periods negatively relate to it. The study aims to inform bank managers and policymakers on effective working capital strategies.
Impact of working capital on profitabilityNuzzar Naseem
This document summarizes a research study that examined the impact of working capital management on the profitability of firms in Pakistan under different business cycles. The study found that cash conversion cycle and accounts receivable showed a negative relationship with firm profitability in different cycles. Inventory had a positive impact on profitability in boom periods. Accounts payable positively impacted profitability in recessions. The study concluded that efficient working capital management can increase firm profitability.
The document discusses earning management and earning response coefficients among manufacturing companies listed on the Indonesian Stock Exchange. It analyzes how profitability, leverage, company scale, manager bonuses, working capital composition, and manager ownership influence earning management and earning response coefficients. The study uses census and descriptive-verification methods, along with multiple regression analyses. The results show that the variables positively and significantly influence earning management and earning response coefficients both simultaneously and partially. Leverage has the strongest influence on earning management, while company scale most influences earning response coefficients.
An Empirical Analysis on the Nature of Relationship between Capital Structure...iosrjce
The financing decision with regard to capital structure theory of finance has been a topic of many
theories and their conflicting output for past many years. This paper aims to analyse the nature of relationship
between the capital structure of a firm and its performance. The data of 40 firms excluding financial services
firms listed on Nifty indices on National Stock Exchange is studied (The composition of 50 firms on Nifty
represents a well branch out index reflecting precisely the overall market conditions). Financial services firms
have been excluded from purview of this paper, as they are in the business of collecting money and investing in
financial assets rather than producing goods, hence follow a unique business valuation model. Further financial
services sector being one of the most sensitive sectors. This paper analyzes a period of 13 years (2001-2014)
covering the phases of a business cycle starting from boom (2001/02-2006/07), recession (2007/08-2008/09)
and then recovery (2009/10-2013/14). The complete business cycle will aid to demonstrate the results more
accurately. This paper also surveys the topical developments in the empirical capital structure research. The
data for a period of 13 years is analysed using descriptive statistics, correlation and multiple regression
techniques. For research purpose, the ratios such as debt-equity ratio, debt-asset ratio and long term debt are
taken as independent variables whereas Net Profit, Net Profit Margin, ROCE, ROE and ROA are the ratios
taken as dependent variables.
This paper proposed and tested the theoretical as well as the hypothesised model that
attempts to confirm whether the relevance of the practice of good corporate governance
influence corporate performance by adopting Return on Assets(ROA), Return on Capital
Employed(ROCE) or Economic Value Added(EVA) reporting which is important for
investment decision making and internal governance. The result of the study provided
important implications necessitating establishing the fact that the various corporate
governance mechanisms viz., board structure and activity, audit committee, shareholders’
rights, remuneration committee, nomination committee and disclosure practices influences the
economic value added for consistent internal governance and value creation for the Indian
companies. The implication of the study hinges upon how to achieve the above mentioned
priorities which is contributory to the advancement of knowledge and as a forethought
exploration in the area of corporate governance. The study shall enable the professional
bodies and Indian corporates to make considerable progress in raising awareness of the value
of good corporate governance by way of establishing relationship between corporate
governance and economic value added, an superior performance metric of reporting the
shareholder’s value creation.
Effect of Financial Ratios on Firm Performance Study of Selected Brewery Firm...ijtsrd
The study assessed the effect of financial ratios on performance of Quoted Breweries firms in Nigeria. It made use of ex post facto research design. Data were gotten from secondary sources obtained from NSE fact books and annual reports accounts of the selected Breweries Companies. The population of the study consisted of thirteen 13 quoted Breweries firms listed on the Nigerian Stock Exchange as at 31st December, 2018. Four 4 of the quoted Breweries firms are selected to form the sample of the study for the period of nine 9 years 2010 – 2018 . The relevant data obtained were subjected to statistical analysis using Pearson correlation coefficient and regression analysis. The results of this study revealed that there is a significant relationship between current ratio and firm performance but negative effect. Debt equity ratio has a significant effect on return on asset of Nigerian Breweries. The result of the study concludes that Nigerian breweries companies are relatively using an optimal mix of debt to equity which is evident from the significant positive relationship of debt equity ratio with financial performance of the Nigerian Breweries. The researchers recommended that the management should employ all carefulness while financing with long term debt instruments endeavor to find out the best and optimal combination of long term debt and equity that will impact positively on the value of the firm. Agbata, Amaka Elizabeth | Osingor, Arinze Stanley | Ezeala, George "Effect of Financial Ratios on Firm Performance: Study of Selected Brewery Firms in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-5 , August 2021, URL: https://www.ijtsrd.com/papers/ijtsrd45177.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/45177/effect-of-financial-ratios-on-firm-performance-study-of-selected-brewery-firms-in-nigeria/agbata-amaka-elizabeth
International Journal of Engineering Research and DevelopmentIJERD Editor
Electrical, Electronics and Computer Engineering,
Information Engineering and Technology,
Mechanical, Industrial and Manufacturing Engineering,
Automation and Mechatronics Engineering,
Material and Chemical Engineering,
Civil and Architecture Engineering,
Biotechnology and Bio Engineering,
Environmental Engineering,
Petroleum and Mining Engineering,
Marine and Agriculture engineering,
Aerospace Engineering.
The document discusses the impact of additional regulations on corporate collapses. It analyzes the advantages and disadvantages of introducing new regulations in response to corporate scandals. While additional regulations may increase accountability and prevent misconduct initially, they also motivate people to find ways around the laws, potentially resulting in more corporate failures. The best solution is a balanced approach combining necessary rules and guiding principles, focusing on ethics over just regulations. Introducing regulations without considering context or consequences is not an effective response.
Comparing Linear Accrual-Based Models in Predicting Earnings Management of Te...iosrjce
IOSR Journal of Business and Management (IOSR-JBM) is a double blind peer reviewed International Journal that provides rapid publication (within a month) of articles in all areas of business and managemant and its applications. The journal welcomes publications of high quality papers on theoretical developments and practical applications inbusiness and management. Original research papers, state-of-the-art reviews, and high quality technical notes are invited for publications.
Determinants of firms’ profitability in pakistanAlexander Decker
This document summarizes a research study that analyzed the determinants of profitability of Pakistani firms. The study examined the relationship between capital structure, financial leverage, firm size and corporate profitability. Data was collected from 50 Pakistani companies over 7 years. Regression analysis found a positive correlation between financial leverage and profitability, and between firm size and profitability. It found a negative correlation between capital structure and profitability. The study concluded additional variables could improve the model for determining corporate profitability.
A critical analysis of funds management in selected cement industries [www.wr...WriteKraft Dissertations
We started this Academic Writing Help in the year 2011.Writekraft Research & Publication: www.writekraft.com 1000s of students have graduated across the globe from our in-depth research.
We help students with the following services:
1. Thesis Writing (from 50 pages and above)
2. Dissertation writing
3. Research Writing for Publishing
4. Data Analysis
5. Research Proposal Writing
6. Study Plan
7. Plagiarism Report
Contact us at admin@writekraft.com OR call us on +917753818181, +919838033084
The charges are fair and we allow negotiations as per the student’s budget. You can also inbox me for more direction.
1. The document discusses ratio analysis and financial analysis. Ratio analysis is a tool that evaluates the financial position and performance of a firm by establishing relationships between financial statement items.
2. Financial analysis identifies the financial strengths and weaknesses of a firm. It is done by analyzing ratios calculated from a firm's balance sheet and income statement. Key ratios include liquidity ratios, profitability ratios, and leverage ratios.
3. Ratio analysis involves comparing a firm's ratios to standards like its own past ratios, competitor ratios, industry averages, and projected ratios. This allows users to evaluate the firm's financial stability, profitability, and efficiency over time.
Determinants of working capital management efficiencyAlexander Decker
This document summarizes a research study that examines the determinants of working capital management efficiency for automotive and engineering firms listed on the Karachi Stock Exchange in Pakistan. The study uses cash conversion cycle, days sales inventory, days payable outstanding, and days sales outstanding as explanatory variables to analyze quarterly panel data from 9 firms over 5 years. It also administers a questionnaire on Enterprise Resource Planning (ERP) systems. The study aims to determine the efficient factors of working capital management for these firms and investigate the relationships between working capital components and independent variables. It concludes that keeping the cash conversion cycle shortest through tight collection policies and liberal payment terms, along with efficient inventory management, can help firms keep working capital efficient.
This document summarizes a study that analyzed the effect of earnings per share (EPS), net profit margin (NPM), and debt to equity ratio (DER) on return on assets (ROA) of companies listed on the LQ45 index of the Indonesia Stock Exchange between 2014-2018. The study used quantitative methods including multiple linear regression to determine the relationships. The results found that EPS and NPM had a positive and significant effect on ROA, while DER had a negative and insignificant effect. Together the independent variables explained 99.34% of the variation in ROA.
Numerical modeling of reinforced soil segmental wall under surcharge loadingIAEME Publication
This document summarizes a numerical study of a reinforced soil segmental wall under surcharge loading. The study uses finite element analysis to model the wall's performance considering different parameters like backfill and foundation soil properties, reinforcement, and surcharge loading. Parametric analyses were conducted to understand the effects of soil stiffness, Poisson's ratio, and surcharge on the wall's deformation. Design charts were developed relating backfill and foundation stiffness to deformation limits to aid wall designers. The finite element software developed and validated was used to conduct the numerical analyses.
A survey on various architectures, models and methodologies for information r...IAEME Publication
This document discusses various architectures, models, and methodologies used in information retrieval. It describes query models, ranking models, and feedback models used by researchers. It also highlights the importance of using context-based queries to better understand a user's search intent. The document provides an extensive survey of different approaches used in information retrieval systems and how adding context can help improve search results.
Solving np hard problem using artificial bee colony algorithmIAEME Publication
The document presents an artificial bee colony (ABC) algorithm to solve the NP-hard shortest common supersequence problem. The ABC algorithm is inspired by the foraging behavior of honey bees. It represents solutions as food sources and uses employed, onlooker, and scout bees to explore the search space. The algorithm calculates character frequencies in input strings to guide random supersequence generation. Fitness is evaluated by comparing sequences using a modified merge algorithm. Results show the ABC approach finds near-optimal solutions compared to other algorithms for solving shortest common supersequences.
This document summarizes the seismic evaluation and retrofit assessment of an old hospital building in Srinagar, India. The hospital was constructed in 1889 and has experienced structural deterioration over time. The summary evaluates the building, finds it unsafe under seismic shear stresses, and recommends retrofit measures like adding seismic belts, grouting cracks, concrete jacketing of walls, and foundation strengthening to improve the building's seismic performance.
An empirical study on customer engagement practices in tourism industryIAEME Publication
This document summarizes a research study on customer engagement practices in the tourism industry. The study examines how user-generated content (UGC) and online travel reviews (OTR) impact travelers' decisions and influence the rapid growth of the online travel industry. Through surveys, the study aims to determine the most engaging travel-related activities online for travelers and understand what factors travelers consider most important when planning vacations. The results can help online travel companies better understand how to utilize customer engagement and UGC.
Dropping based contention resolution for service differentiation to provide qo sIAEME Publication
This document discusses an approach for providing quality of service (QoS) in optical burst switching (OBS) networks through service differentiation. It proposes a dropping-based contention resolution algorithm that aims to reduce the loss of high priority data, specifically most high priority (MHP) data bursts that have tight delay constraints. The algorithm allows MHP data bursts to preempt channels allocated to lower priority data if resource thresholds are reached. It is evaluated through simulations to study the dropping probability behavior of different priority data bursts under increasing load. The performance is compared to an existing algorithm. The proposed approach does not require independent wavelength assignment or clock synchronization across nodes like some other approaches.
1) The document describes a regenerative loading system that uses a converter to emulate various active and reactive power loads and regenerate consumed power back to the grid.
2) The system uses vector control to independently control active and reactive power by controlling the quadrature and direct axis current components.
3) A phase locked loop and transformations between stationary and synchronously rotating reference frames are used to generate control signals for the converter.
Durability studies on high strength high performance concrete 2IAEME Publication
The document discusses durability studies on high strength high performance concrete. Three key findings are:
1) Initial surface absorption values for the mixes studied were generally low, below 0.17 ml/m2/s after 10 minutes, indicating dense microstructure limiting water ingress.
2) For a given microsilica content, there exists an optimum superplasticizer dosage that yields best durability results, and this dosage increases with increasing microsilica.
3) At the same powder content, mixes with higher cement content exhibited lower absorption and permeability, emphasizing the complex relationship between cement, microsilica and superplasticizer quantities.
This document summarizes and reviews different techniques for video inpainting. It begins by defining video inpainting and distinguishing it from image inpainting due to additional temporal factors that must be considered. It then categorizes and reviews three main approaches: PDE-based methods, texture synthesis methods, and patch-based methods. For each approach, one or two influential works are described, focusing on the techniques and limitations. The review concludes by noting that while progress has been made, developing a video inpainting technique that can ensure both spatial and temporal consistency remains a challenge.
A Critical Study On Impact Of Working Capital Management On Profitability Of ...Elizabeth Williams
This document presents a study on the impact of working capital management on the profitability of manufacturing firms in India, focusing specifically on paint companies. It begins with an abstract that summarizes the purpose and findings of the study.
The introduction provides background on working capital and its relationship to liquidity and profitability. It states that the study aims to analyze the relationship between working capital variables and profitability in selected paint companies.
The literature review discusses several prior studies that have examined relationships between working capital management, liquidity, and profitability. The research gap identified is that prior studies have not adequately examined profitability issues in the Indian paint industry and how controlling working capital components could impact losses.
The study objectives and
The main objective of this paper such as the Karachi Stock Exchange market development working capital management (WCM) on firm performance is to determine the impact. In this paper the chemical industry for the period 2009-2014 to 6 years for a sample of 22 firms Karachi Stock Exchange (KSE) working capital management and firm performance of different variables used for analysis . Working Capital Management to measure the variables that were used in this study are the number of recovery days , days in inventory and size , leverage , inventory , equity , sales and gross domestic product (GDP) numbers are control variables. Firm performance measure used in this study for the dependent variable is the return on assets. Firm size is positively affected by the firm’s profits. Firms whose profits are high, their working capital firms are not interested in management and firm performance. The result of the study and working capital is negative relationship between firm performance shows. Is a positive relationship between size and profitability? Firm size is increased or decreased profit increased or decreased respectively. Moreover, profits and principles that support the pecking order used by firms are negative relationship between debts.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
The document discusses working capital management and its impact on the profitability of fertilizer companies in Pakistan. It begins with background information on fertilizer and working capital management. It then presents the problem statement, objectives, and significance of the study. The literature review defines key terms and discusses previous empirical research findings regarding the relationship between various aspects of working capital management (average collection period, inventory conversion period, average payment period, and cash conversion cycle) and return on assets as a measure of profitability. The study aims to analyze these relationships for fertilizer firms in Pakistan using a empirical model and hypotheses. The methodology discusses the research design, sample size, statistical tools, and software used. Preliminary results from the analysis are also presented in
A Comparative Study on Working Capital Management of Tata Motors Limited and ...Dr. Amarjeet Singh
The automobile industry in India is one of the speedily growing industry. Working Capital Management is important in this industry due to increasing demand and huge investment in this sector requires proper management. Working Capital Management perform a vital role in the success and failure of a business due to its effect on the performance and liquidity. Thereby this study has been undertaken to Comparative analyse working capital management of Tata Motors Limited and Maruti Suzuki India Limited for the period of seven years from 2013-14 to 2019-20. In this study three objectives are set for research. The first one was to assess the impact of working capital on sales, second was to assess the impact of working capital on profitability and third was to evaluate the working capital performance of the companies under study through the use of various financial ratios. The study reflects that the efficiency of working capital management of the companies is influenced by the Liquidity Ratios, Debtor Turnover Ratio, Inventory Turnover Ratio and profitability Ratio.
WORKING CAPITAL MANAGEMENT BASED ON THE STUDY AT SAKTHI SUGARS, TAMILNADUIAEME Publication
Working capital is a very important concept in finance. Any firm, irrespective of its area of operations, requires working capital to carry out its day-to-day activities. The effective and efficient use of working capital is a major concern for any organisation as excess of working capital means the firm is unnecessarily keeping its liquid fund in an idle investment, which does not earn any return. But at the same time, a lower level of working capital may at time seven hinder the daily operations of the firm. Hence, the topic of “Working Capital Management “is of vital importance. The study has been conducted to understand the importance of working capital management and measures to do it with special reference to Sakthi Sugars based in Tamil Nadu. Working capital analysis and ratio analysis tools have been used for the study. The study helps in finding out how a firm can do effective management of its working capital.
This document summarizes a research study that analyzed the impact of mergers and acquisitions (M&As) on the financial performance of acquiring firms across different industries in India. The study used a sample of 115 acquiring companies that completed M&A deals between 2009-2010. Financial ratios were used to compare the pre-merger and post-merger performance in areas like profitability, liquidity, and leverage. A paired t-test was conducted to determine if there were significant differences between the pre-and post-merger financial performance. The findings of this study will help evaluate the success of M&As from the perspective of the acquiring firms and whether the financial impact varied across industries in India.
GLOBAL RESEARCH TREND AND FUTURISTIC RESEARCH DIRECTION VISUALIZATION OF WORK...indexPub
Purpose – The purpose of this research is to undertake a bibliometric analysis of working capital management. The study examines papers from time period 1974-2023and performed performance analysis, co-citation analysis, bibliographic coupling and scientific mapping. Design/methodology/approach – The study examines 174 articles retrieved from the Scopus database using bibliometric analysis, performance analysis and thematic clustering. The study looked at the scientific productivity of papers, prolific authors, most influencing papers, institutions and nations, keyword co-occurrence, thematic mapping, co-citations and authorship and country collaborations. VOSviewer was as a tool in the research to conduct the performance analysis and thematic clustering.The watchword "Working Capital Management" was used to include only English-language articles. Findings – The most productive year was 2022 with 26 publications. Martínez and García- are the most protuberant authors with 708 citations. The findings of the study shows that the most influential institutions are ‘The Department of Management and Finance, Faculty of Economy andBusiness and Department of Management and Finance, Faculty of Economics and Business, The University of Murcia, Spain with 381 & 297 citations. Among,thecountry analysis,Spain with 744 citations stands first of all other nations for publication on Working Capital Management. Kärri is the most productive author with 7 documents. Country-wise analysis reveals that the United States is the most productive country for Working Capital Management research with 40 documents.The authors also identified seven thematic clusters of Working Capital Management. Research limitations/implications – It informs and directs researchers on the current state of study in the field of Working Capital Management.The present study has quite a few implications forSmall & Medium enterprise managers, entrepreneurs, financial managers, academicians and scholars. It also outlines future research directions in this field.Present study provides an inclusive acquaintance about the working capital management till date. Originality/value – This is the first study which provides the performance analysis and scientific mapping of the all published documents on working capital management between the time periods 1974-2023
Capital structure efficiency of cement industry in tamil naduIAEME Publication
The document summarizes a study on the capital structure efficiency of cement companies in Tamil Nadu over 10 years from 1996-1997 to 2005-2006. The study used Data Envelopment Analysis to evaluate the efficiency of 4 major cement companies - India Cements Limited, Dalmia Cement, Madras Cements Limited, and Chettinadu Cement Corporation Limited. The results showed that the capital structure efficiency scores varied over the years for each company, with most companies having some inefficient years. Cost of funds was found to influence capital structure management efficiency.
The goal of working capital management is to
ensure that the firm is able to continue its operations and that
it has sufficient cash flow to satisfy both maturing short-term
debt and upcoming operational expenses. The current study
has concentrated on analysing the working capital
management of Larsen & Turbo Company based on their
liquidity, profitability positions and cash flow statements over
a decade. The study is based on secondary data collected
from the financial reports published in the official websites of
the company for a period of thirteen years from 2003-04 to
2015-16. The data have been analyzed using the financial and
statistical tools namely Ratio Analysis, cash flow and
Correlation Analysis. It has been found that the working
capital management of Larsen & Turbo is good and the
company has to improve its turnover ratios in the future.
Working capital management year wise researchErum Altaf
This presentation is about the research which have been done in field of Working Capital. Different esearchers done research on WCM in different aspect,
Post privatization Corporate Governance and the challenges of working capital...inventionjournals
The document discusses corporate governance and working capital challenges in Nigeria after privatization. It examines the impact of corporate governance proxies like ownership structure, board characteristics, and privatization on the liquidity ratio of Ashaka Cement Company. Trend analysis found the liquidity ratio was generally higher before privatization but declined significantly at times due to economic issues. Regression analysis suggests some corporate governance factors like minority ownership and privatization had a positive impact on liquidity ratio, while others like non-executive directors and market value had a negative impact. The study concludes corporate governance significantly impacts liquidity ratio but macroeconomic environment also influences company efficiency.
Interfirm comparison on select private banking companies in indiaIAEME Publication
This document provides an analysis of the financial performance of 10 private banking companies in India from 2007-2008 to 2011-2012 using 7 key financial ratios. The ratios analyzed include net profit ratio, return on total assets, return on shareholders' funds, return on capital employed, asset turnover ratio, current ratio, and operating expenses ratio. The companies' performance on these ratios was evaluated using quartile deviation technique to classify them as having low, average, or high performance. The analysis found that Karur Vysya Bank Ltd and City Union Bank Ltd consistently demonstrated higher performance ratios compared to the other banks.
Corporate Governance on Earnings Management in Listed Deposit Money Bank in N...ijtsrd
The increase in the manipulation of accounting records and collapse of some Nigerian Deposit Money Banks have left question in the mind of researchers on the role of corporate governance. This paper was carried out to examine the impact of corporate governance attributes on earnings management of listed Deposit Money Banks from 2009 to 2017. The study used a sample size of thirteen 13 banks. The dependent variable was measured using Discretionary Loan Loss Provision Model by Chang, Shen and Fang 2008 . Correlational design was employed the secondary data was obtained from the annual reports of the firms and Nigerian Stock Exchange website. The results from the multiple regression analysis proved that board size has positive and significant impact on earnings management board independence has negative and significant impact on earnings management while board of directors' ownership has insignificant impact on earnings management. The study concludes that effective monitoring role of independence directors will constrain the opportunistic behavior by managers. The paper therefore recommends among others that banks should increase the numbers of independent directors on the board to improve their monitoring effectiveness. Olaleye John Olatunde | Amafa Etupu Oluwafunmilayo "Corporate Governance on Earnings Management in Listed Deposit Money Bank in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-1 , December 2019, URL: https://www.ijtsrd.com/papers/ijtsrd29515.pdfPaper URL: https://www.ijtsrd.com/management/other/29515/corporate-governance-on-earnings-management-in-listed-deposit-money-bank-in-nigeria/olaleye-john-olatunde
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Intellectual capital: A modern model to measure the value creation in a businessAI Publications
Using a sample of 92 patients, this study looked into the impact of intellectual capital on the efficiency of private hospitals. The researchers used a quantitative approach to assess the effect of Intellectual capital (Human capital, Structural capital, and Relational capital) on long-term competitive advantage in private hospitals in Iraq's Kurdistan region. The research sample was selected using a random sampling method and conducted in various locations across Iraq's Kurdistan province. A total of 110 questionnaires were distributed, but only 92 people correctly completed them. The findings revealed that the most effective relationship with firm success was between human capital as an element of Intellectual capital, while the least effective relationship was between ownership as an element of Intellectual capital. Furthermore, our findings indicate that finance managers should use debts as a last resort in terms of intellectual capital. Finally, our research can be improved by using more controlled variables, a greater sample size, and data from a longer time span in the regression models. Other methods and steps can be used as well.
This document is a thesis submitted by Umair Iqbal to Newport Institute of Communication and Economics examining the impact of working capital management on firm performance in the manufacturing sector of Pakistan. It includes an introduction outlining the background and importance of working capital management for firm performance. The literature review discusses previous research finding relationships between working capital management variables like credit policy, accounts payable practices, inventory control and liquidity management with profitability. The study aims to determine these relationships for manufacturing firms in Pakistan. The methodology section outlines the correlation research design, data collection of primary and secondary data from 216 manufacturing firms, and descriptive and quantitative analysis methods used like correlation, regression and ANOVA. The results are expected to show relationships between working capital management
Corporate governance is of great importance for financial performance. Corporate governance issues have attracted public interest in the financial sector both locally and internationally after waves of corporate rip-offs and failures that almost led to loss of confidence in the finance sector. The general objective of this study was to determine the effect of corporate governance on financial performance of Savings and Credit Co-operatives in Kenya. The study adopted a descriptive research design. The study targeted a population of 65 active Savings and credit Co-operatives operating in Embu County. A sample size of 57 Savings and Credit Co-operatives was used in this study. Stratified sampling technique was used to select the sample. Primary data was collected using self-administered semi-structured questionnaires while secondary data was obtained from financial statements and periodicals using a record survey sheet. Pre-testing of research tool was conducted before the actual data collection was carried, to determine the reliability of the questionnaire by use of a Cronbach‘s alpha, statistical coefficient, while the validity was tested to ensure that the questions in the questionnaire provides adequate coverage to the investigative questions. Correlation and multiple regression analysis was used to establish the relationship between independent and dependent variables. The study findings indicated that corporate governance positively affected the financial performance. In specific the board composition and corporate risk management for SACCOs had a positive effect on the financial performances of the SACCOs. The study is beneficial to SACCOs management in improving the performance of Savings and Credit Co-operatives and enabling them to compete globally. The study recommends gender parity consideration and balanced mix of skilled board members during appointments of the board members. The recommendations are important to the government, especially the department of cooperatives in strengthening policies regarding cooperative societies.
A critical view of undisclosed facts of disclosed fact sheets a case study of...iaemedu
This document summarizes a research paper that examines disclosure practices of financial statements for mutual funds in India. It discusses how financial statements should provide a true and fair view but often contain undisclosed facts. The paper aims to study disclosure norms, methods to improve timely financial reporting, and analyze disclosures in UTI mutual fund fact sheets. It reviews literature on perceptions of financial report disclosures and compliance with accounting standards in India. The paper also examines measures needed for good corporate governance like gradual liberalization policies, enhancing financial reporting, and improving investor protection laws.
Similar to Working capital management profitability empirical (20)
Submission Deadline: 30th September 2022
Acceptance Notification: Within Three Days’ time period
Online Publication: Within 24 Hrs. time Period
Expected Date of Dispatch of Printed Journal: 5th October 2022
MODELING AND ANALYSIS OF SURFACE ROUGHNESS AND WHITE LATER THICKNESS IN WIRE-...IAEME Publication
White layer thickness (WLT) formed and surface roughness in wire electric discharge turning (WEDT) of tungsten carbide composite has been made to model through response surface methodology (RSM). A Taguchi’s standard Design of experiments involving five input variables with three levels has been employed to establish a mathematical model between input parameters and responses. Percentage of cobalt content, spindle speed, Pulse on-time, wire feed and pulse off-time were changed during the experimental tests based on the Taguchi’s orthogonal array L27 (3^13). Analysis of variance (ANOVA) revealed that the mathematical models obtained can adequately describe performance within the parameters of the factors considered. There was a good agreement between the experimental and predicted values in this study.
A STUDY ON THE REASONS FOR TRANSGENDER TO BECOME ENTREPRENEURSIAEME Publication
The study explores the reasons for a transgender to become entrepreneurs. In this study transgender entrepreneur was taken as independent variable and reasons to become as dependent variable. Data were collected through a structured questionnaire containing a five point Likert Scale. The study examined the data of 30 transgender entrepreneurs in Salem Municipal Corporation of Tamil Nadu State, India. Simple Random sampling technique was used. Garrett Ranking Technique (Percentile Position, Mean Scores) was used as the analysis for the present study to identify the top 13 stimulus factors for establishment of trans entrepreneurial venture. Economic advancement of a nation is governed upon the upshot of a resolute entrepreneurial doings. The conception of entrepreneurship has stretched and materialized to the socially deflated uncharted sections of transgender community. Presently transgenders have smashed their stereotypes and are making recent headlines of achievements in various fields of our Indian society. The trans-community is gradually being observed in a new light and has been trying to achieve prospective growth in entrepreneurship. The findings of the research revealed that the optimistic changes are taking place to change affirmative societal outlook of the transgender for entrepreneurial ventureship. It also laid emphasis on other transgenders to renovate their traditional living. The paper also highlights that legislators, supervisory body should endorse an impartial canons and reforms in Tamil Nadu Transgender Welfare Board Association.
BROAD UNEXPOSED SKILLS OF TRANSGENDER ENTREPRENEURSIAEME Publication
Since ages gender difference is always a debatable theme whether caused by nature, evolution or environment. The birth of a transgender is dreadful not only for the child but also for their parents. The pain of living in the wrong physique and treated as second class victimized citizen is outrageous and fully harboured with vicious baseless negative scruples. For so long, social exclusion had perpetuated inequality and deprivation experiencing ingrained malign stigma and besieged victims of crime or violence across their life spans. They are pushed into the murky way of life with a source of eternal disgust, bereft sexual potency and perennial fear. Although they are highly visible but very little is known about them. The common public needs to comprehend the ravaged arrogance on these insensitive souls and assist in integrating them into the mainstream by offering equal opportunity, treat with humanity and respect their dignity. Entrepreneurship in the current age is endorsing the gender fairness movement. Unstable careers and economic inadequacy had inclined one of the gender variant people called Transgender to become entrepreneurs. These tiny budding entrepreneurs resulted in economic transition by means of employment, free from the clutches of stereotype jobs, raised standard of living and handful of financial empowerment. Besides all these inhibitions, they were able to witness a platform for skill set development that ignited them to enter into entrepreneurial domain. This paper epitomizes skill sets involved in trans-entrepreneurs of Thoothukudi Municipal Corporation of Tamil Nadu State and is a groundbreaking determination to sightsee various skills incorporated and the impact on entrepreneurship.
DETERMINANTS AFFECTING THE USER'S INTENTION TO USE MOBILE BANKING APPLICATIONSIAEME Publication
The banking and financial services industries are experiencing increased technology penetration. Among them, the banking industry has made technological advancements to better serve the general populace. The economy focused on transforming the banking sector's system into a cashless, paperless, and faceless one. The researcher wants to evaluate the user's intention for utilising a mobile banking application. The study also examines the variables affecting the user's behaviour intention when selecting specific applications for financial transactions. The researcher employed a well-structured questionnaire and a descriptive study methodology to gather the respondents' primary data utilising the snowball sampling technique. The study includes variables like performance expectations, effort expectations, social impact, enabling circumstances, and perceived risk. Each of the aforementioned variables has a major impact on how users utilise mobile banking applications. The outcome will assist the service provider in comprehending the user's history with mobile banking applications.
ANALYSE THE USER PREDILECTION ON GPAY AND PHONEPE FOR DIGITAL TRANSACTIONSIAEME Publication
Technology upgradation in banking sector took the economy to view that payment mode towards online transactions using mobile applications. This system enabled connectivity between banks, Merchant and user in a convenient mode. there are various applications used for online transactions such as Google pay, Paytm, freecharge, mobikiwi, oxygen, phonepe and so on and it also includes mobile banking applications. The study aimed at evaluating the predilection of the user in adopting digital transaction. The study is descriptive in nature. The researcher used random sample techniques to collect the data. The findings reveal that mobile applications differ with the quality of service rendered by Gpay and Phonepe. The researcher suggest the Phonepe application should focus on implementing the application should be user friendly interface and Gpay on motivating the users to feel the importance of request for money and modes of payments in the application.
VOICE BASED ATM FOR VISUALLY IMPAIRED USING ARDUINOIAEME Publication
The prototype of a voice-based ATM for visually impaired using Arduino is to help people who are blind. This uses RFID cards which contain users fingerprint encrypted on it and interacts with the users through voice commands. ATM operates when sensor detects the presence of one person in the cabin. After scanning the RFID card, it will ask to select the mode like –normal or blind. User can select the respective mode through voice input, if blind mode is selected the balance check or cash withdraw can be done through voice input. Normal mode procedure is same as the existing ATM.
IMPACT OF EMOTIONAL INTELLIGENCE ON HUMAN RESOURCE MANAGEMENT PRACTICES AMONG...IAEME Publication
There is increasing acceptability of emotional intelligence as a major factor in personality assessment and effective human resource management. Emotional intelligence as the ability to build capacity, empathize, co-operate, motivate and develop others cannot be divorced from both effective performance and human resource management systems. The human person is crucial in defining organizational leadership and fortunes in terms of challenges and opportunities and walking across both multinational and bilateral relationships. The growing complexity of the business world requires a great deal of self-confidence, integrity, communication, conflict and diversity management to keep the global enterprise within the paths of productivity and sustainability. Using the exploratory research design and 255 participants the result of this original study indicates strong positive correlation between emotional intelligence and effective human resource management. The paper offers suggestions on further studies between emotional intelligence and human capital development and recommends for conflict management as an integral part of effective human resource management.
VISUALISING AGING PARENTS & THEIR CLOSE CARERS LIFE JOURNEY IN AGING ECONOMYIAEME Publication
Our life journey, in general, is closely defined by the way we understand the meaning of why we coexist and deal with its challenges. As we develop the "inspiration economy", we could say that nearly all of the challenges we have faced are opportunities that help us to discover the rest of our journey. In this note paper, we explore how being faced with the opportunity of being a close carer for an aging parent with dementia brought intangible discoveries that changed our insight of the meaning of the rest of our life journey.
A STUDY ON THE IMPACT OF ORGANIZATIONAL CULTURE ON THE EFFECTIVENESS OF PERFO...IAEME Publication
The main objective of this study is to analyze the impact of aspects of Organizational Culture on the Effectiveness of the Performance Management System (PMS) in the Health Care Organization at Thanjavur. Organizational Culture and PMS play a crucial role in present-day organizations in achieving their objectives. PMS needs employees’ cooperation to achieve its intended objectives. Employees' cooperation depends upon the organization’s culture. The present study uses exploratory research to examine the relationship between the Organization's culture and the Effectiveness of the Performance Management System. The study uses a Structured Questionnaire to collect the primary data. For this study, Thirty-six non-clinical employees were selected from twelve randomly selected Health Care organizations at Thanjavur. Thirty-two fully completed questionnaires were received.
Living in 21st century in itself reminds all of us the necessity of police and its administration. As more and more we are entering into the modern society and culture, the more we require the services of the so called ‘Khaki Worthy’ men i.e., the police personnel. Whether we talk of Indian police or the other nation’s police, they all have the same recognition as they have in India. But as already mentioned, their services and requirements are different after the like 26th November, 2008 incidents, where they without saving their own lives has sacrificed themselves without any hitch and without caring about their respective family members and wards. In other words, they are like our heroes and mentors who can guide us from the darkness of fear, militancy, corruption and other dark sides of life and so on. Now the question arises, if Gandhi would have been alive today, what would have been his reaction/opinion to the police and its functioning? Would he have some thing different in his mind now what he had been in his mind before the partition or would he be going to start some Satyagraha in the form of some improvement in the functioning of the police administration? Really these questions or rather night mares can come to any one’s mind, when there is too much confusion is prevailing in our minds, when there is too much corruption in the society and when the polices working is also in the questioning because of one or the other case throughout the India. It is matter of great concern that we have to thing over our administration and our practical approach because the police personals are also like us, they are part and parcel of our society and among one of us, so why we all are pin pointing towards them.
A STUDY ON TALENT MANAGEMENT AND ITS IMPACT ON EMPLOYEE RETENTION IN SELECTED...IAEME Publication
The goal of this study was to see how talent management affected employee retention in the selected IT organizations in Chennai. The fundamental issue was the difficulty to attract, hire, and retain talented personnel who perform well and the gap between supply and demand of talent acquisition and retaining them within the firms. The study's main goals were to determine the impact of talent management on employee retention in IT companies in Chennai, investigate talent management strategies that IT companies could use to improve talent acquisition, performance management, career planning and formulate retention strategies that the IT firms could use. The respondents were given a structured close-ended questionnaire with the 5 Point Likert Scale as part of the study's quantitative research design. The target population consisted of 289 IT professionals. The questionnaires were distributed and collected by the researcher directly. The Statistical Package for Social Sciences (SPSS) was used to collect and analyse the questionnaire responses. Hypotheses that were formulated for the various areas of the study were tested using a variety of statistical tests. The key findings of the study suggested that talent management had an impact on employee retention. The studies also found that there is a clear link between the implementation of talent management and retention measures. Management should provide enough training and development for employees, clarify job responsibilities, provide adequate remuneration packages, and recognise employees for exceptional performance.
ATTRITION IN THE IT INDUSTRY DURING COVID-19 PANDEMIC: LINKING EMOTIONAL INTE...IAEME Publication
Globally, Millions of dollars were spent by the organizations for employing skilled Information Technology (IT) professionals. It is costly to replace unskilled employees with IT professionals possessing technical skills and competencies that aid in interconnecting the business processes. The organization’s employment tactics were forced to alter by globalization along with technological innovations as they consistently diminish to remain lean, outsource to concentrate on core competencies along with restructuring/reallocate personnel to gather efficiency. As other jobs, organizations or professions have become reasonably more appropriate in a shifting employment landscape, the above alterations trigger both involuntary as well as voluntary turnover. The employee view on jobs is also afflicted by the COVID-19 pandemic along with the employee-driven labour market. So, having effective strategies is necessary to tackle the withdrawal rate of employees. By associating Emotional Intelligence (EI) along with Talent Management (TM) in the IT industry, the rise in attrition rate was analyzed in this study. Only 303 respondents were collected out of 350 participants to whom questionnaires were distributed. From the employees of IT organizations located in Bangalore (India), the data were congregated. A simple random sampling methodology was employed to congregate data as of the respondents. Generating the hypothesis along with testing is eventuated. The effect of EI and TM along with regression analysis between TM and EI was analyzed. The outcomes indicated that employee and Organizational Performance (OP) were elevated by effective EI along with TM.
INFLUENCE OF TALENT MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE A STUD...IAEME Publication
By implementing talent management strategy, organizations would have the option to retain their skilled professionals while additionally working on their overall performance. It is the course of appropriately utilizing the ideal individuals, setting them up for future top positions, exploring and dealing with their performance, and holding them back from leaving the organization. It is employee performance that determines the success of every organization. The firm quickly obtains an upper hand over its rivals in the event that its employees having particular skills that cannot be duplicated by the competitors. Thus, firms are centred on creating successful talent management practices and processes to deal with the unique human resources. Firms are additionally endeavouring to keep their top/key staff since on the off chance that they leave; the whole store of information leaves the firm's hands. The study's objective was to determine the impact of talent management on organizational performance among the selected IT organizations in Chennai. The study recommends that talent management limitedly affects performance. On the off chance that this talent is appropriately management and implemented properly, organizations might benefit as much as possible from their maintained assets to support development and productivity, both monetarily and non-monetarily.
A STUDY OF VARIOUS TYPES OF LOANS OF SELECTED PUBLIC AND PRIVATE SECTOR BANKS...IAEME Publication
Banking regulations act of India, 1949 defines banking as “acceptance of deposits for the purpose of lending or investment from the public, repayment on demand or otherwise and withdrawable through cheques, drafts order or otherwise”, the major participants of the Indian financial system are commercial banks, the financial institution encompassing term lending institutions. Investments institutions, specialized financial institution and the state level development banks, non banking financial companies (NBFC) and other market intermediaries such has the stock brokers and money lenders are among the oldest of the certain variants of NBFC and the oldest market participants. The asset quality of banks is one of the most important indicators of their financial health. The Indian banking sector has been facing severe problems of increasing Non- Performing Assets (NPAs). The NPAs growth directly and indirectly affects the quality of assets and profitability of banks. It also shows the efficiency of banks credit risk management and the recovery effectiveness. NPA do not generate any income, whereas, the bank is required to make provisions for such as assets that why is a double edge weapon. This paper outlines the concept of quality of bank loans of different types like Housing, Agriculture and MSME loans in state Haryana of selected public and private sector banks. This study is highlighting problems associated with the role of commercial bank in financing Small and Medium Scale Enterprises (SME). The overall objective of the research was to assess the effect of the financing provisions existing for the setting up and operations of MSMEs in the country and to generate recommendations for more robust financing mechanisms for successful operation of the MSMEs, in turn understanding the impact of MSME loans on financial institutions due to NPA. There are many research conducted on the topic of Non- Performing Assets (NPA) Management, concerning particular bank, comparative study of public and private banks etc. In this paper the researcher is considering the aggregate data of selected public sector and private sector banks and attempts to compare the NPA of Housing, Agriculture and MSME loans in state Haryana of public and private sector banks. The tools used in the study are average and Anova test and variance. The findings reveal that NPA is common problem for both public and private sector banks and is associated with all types of loans either that is housing loans, agriculture loans and loans to SMES. NPAs of both public and private sector banks show the increasing trend. In 2010-11 GNPA of public and private sector were at same level it was 2% but after 2010-11 it increased in many fold and at present there is GNPA in some more than 15%. It shows the dark area of Indian banking sector.
EXPERIMENTAL STUDY OF MECHANICAL AND TRIBOLOGICAL RELATION OF NYLON/BaSO4 POL...IAEME Publication
An experiment conducted in this study found that BaSO4 changed Nylon 6's mechanical properties. By changing the weight ratios, BaSO4 was used to make Nylon 6. This Researcher looked into how hard Nylon-6/BaSO4 composites are and how well they wear. Experiments were done based on Taguchi design L9. Nylon-6/BaSO4 composites can be tested for their hardness number using a Rockwell hardness testing apparatus. On Nylon/BaSO4, the wear behavior was measured by a wear monitor, pinon-disc friction by varying reinforcement, sliding speed, and sliding distance, and the microstructure of the crack surfaces was observed by SEM. This study provides significant contributions to ultimate strength by increasing BaSO4 content up to 16% in the composites, and sliding speed contributes 72.45% to the wear rate
ROLE OF SOCIAL ENTREPRENEURSHIP IN RURAL DEVELOPMENT OF INDIA - PROBLEMS AND ...IAEME Publication
The majority of the population in India lives in villages. The village is the back bone of the country. Village or rural industries play an important role in the national economy, particularly in the rural development. Developing the rural economy is one of the key indicators towards a country’s success. Whether it be the need to look after the welfare of the farmers or invest in rural infrastructure, Governments have to ensure that rural development isn’t compromised. The economic development of our country largely depends on the progress of rural areas and the standard of living of rural masses. Village or rural industries play an important role in the national economy, particularly in the rural development. Rural entrepreneurship is based on stimulating local entrepreneurial talent and the subsequent growth of indigenous enterprises. It recognizes opportunity in the rural areas and accelerates a unique blend of resources either inside or outside of agriculture. Rural entrepreneurship brings an economic value to the rural sector by creating new methods of production, new markets, new products and generate employment opportunities thereby ensuring continuous rural development. Social Entrepreneurship has the direct and primary objective of serving the society along with the earning profits. So, social entrepreneurship is different from the economic entrepreneurship as its basic objective is not to earn profits but for providing innovative solutions to meet the society needs which are not taken care by majority of the entrepreneurs as they are in the business for profit making as a sole objective. So, the Social Entrepreneurs have the huge growth potential particularly in the developing countries like India where we have huge societal disparities in terms of the financial positions of the population. Still 22 percent of the Indian population is below the poverty line and also there is disparity among the rural & urban population in terms of families living under BPL. 25.7 percent of the rural population & 13.7 percent of the urban population is under BPL which clearly shows the disparity of the poor people in the rural and urban areas. The need to develop social entrepreneurship in agriculture is dictated by a large number of social problems. Such problems include low living standards, unemployment, and social tension. The reasons that led to the emergence of the practice of social entrepreneurship are the above factors. The research problem lays upon disclosing the importance of role of social entrepreneurship in rural development of India. The paper the tendencies of social entrepreneurship in India, to present successful examples of such business for providing recommendations how to improve situation in rural areas in terms of social entrepreneurship development. Indian government has made some steps towards development of social enterprises, social entrepreneurship, and social in- novation, but a lot remains to be improved.
OPTIMAL RECONFIGURATION OF POWER DISTRIBUTION RADIAL NETWORK USING HYBRID MET...IAEME Publication
Distribution system is a critical link between the electric power distributor and the consumers. Most of the distribution networks commonly used by the electric utility is the radial distribution network. However in this type of network, it has technical issues such as enormous power losses which affect the quality of the supply. Nowadays, the introduction of Distributed Generation (DG) units in the system help improve and support the voltage profile of the network as well as the performance of the system components through power loss mitigation. In this study network reconfiguration was done using two meta-heuristic algorithms Particle Swarm Optimization and Gravitational Search Algorithm (PSO-GSA) to enhance power quality and voltage profile in the system when simultaneously applied with the DG units. Backward/Forward Sweep Method was used in the load flow analysis and simulated using the MATLAB program. Five cases were considered in the Reconfiguration based on the contribution of DG units. The proposed method was tested using IEEE 33 bus system. Based on the results, there was a voltage profile improvement in the system from 0.9038 p.u. to 0.9594 p.u.. The integration of DG in the network also reduced power losses from 210.98 kW to 69.3963 kW. Simulated results are drawn to show the performance of each case.
APPLICATION OF FRUGAL APPROACH FOR PRODUCTIVITY IMPROVEMENT - A CASE STUDY OF...IAEME Publication
Manufacturing industries have witnessed an outburst in productivity. For productivity improvement manufacturing industries are taking various initiatives by using lean tools and techniques. However, in different manufacturing industries, frugal approach is applied in product design and services as a tool for improvement. Frugal approach contributed to prove less is more and seems indirectly contributing to improve productivity. Hence, there is need to understand status of frugal approach application in manufacturing industries. All manufacturing industries are trying hard and putting continuous efforts for competitive existence. For productivity improvements, manufacturing industries are coming up with different effective and efficient solutions in manufacturing processes and operations. To overcome current challenges, manufacturing industries have started using frugal approach in product design and services. For this study, methodology adopted with both primary and secondary sources of data. For primary source interview and observation technique is used and for secondary source review has done based on available literatures in website, printed magazines, manual etc. An attempt has made for understanding application of frugal approach with the study of manufacturing industry project. Manufacturing industry selected for this project study is Mahindra and Mahindra Ltd. This paper will help researcher to find the connections between the two concepts productivity improvement and frugal approach. This paper will help to understand significance of frugal approach for productivity improvement in manufacturing industry. This will also help to understand current scenario of frugal approach in manufacturing industry. In manufacturing industries various process are involved to deliver the final product. In the process of converting input in to output through manufacturing process productivity plays very critical role. Hence this study will help to evolve status of frugal approach in productivity improvement programme. The notion of frugal can be viewed as an approach towards productivity improvement in manufacturing industries.
A MULTIPLE – CHANNEL QUEUING MODELS ON FUZZY ENVIRONMENTIAEME Publication
In this paper, we investigated a queuing model of fuzzy environment-based a multiple channel queuing model (M/M/C) ( /FCFS) and study its performance under realistic conditions. It applies a nonagonal fuzzy number to analyse the relevant performance of a multiple channel queuing model (M/M/C) ( /FCFS). Based on the sub interval average ranking method for nonagonal fuzzy number, we convert fuzzy number to crisp one. Numerical results reveal that the efficiency of this method. Intuitively, the fuzzy environment adapts well to a multiple channel queuing models (M/M/C) ( /FCFS) are very well.
2. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
6510(Online), Volume 4, Issue 1, January- February (2013)
root causes leading to unsatisfactory returns on working capital improvement initiatives.
Working capital management (WCM) due to its multifaceted nature is the most complex
business process to manage. It requires seamless integration of functional
interdependencies of sales, operations and finance and a flawless execution to unlock the
hidden working capital. Many existing research papers have found that managers spend a
considerable time on day to day working of capital decisions since current assets are short
lived investments that are continually being converted to other assets type (Rao 1989).
The chief financial officers of most companies spend most of their time and effort on day
to day WCM. Still, due to the inability of financial managers to properly plan and control
the current assets and current liabilities of their companies, likewise, the failure of a large
number of businesses can be attributed to the inefficient WCM (Smith 1973). Business
success heavily depends on the financial executives’ ability to effectively manage
receivables, inventory, and payables (Filbeck and Krueger 2005). Kumar and Tayyab
(1989) formulate and estimate for India an aggregate production function. The rationale
for the formulation is argued from the importance of working capital funds in organizing
production, and how the supply of money or the lack thereof, may constrain its
availability in a financially underdeveloped economy characterized by imperfect capital
markets
Specific research studies exclusively on the impact of WCM on profitability of
manufacturing firms are scanty especially for the case of India. India is attracting
significant attention as an attractive location for manufacturing industries in recent times.
As an important sector in the overall economic growth, manufacturing sector requires in
depth analysis at industry as well as firm level. Keeping this in view and the wider
recognition of the potential contribution of the manufacturing sector to the economy of
developing countries, the following objectives have been made for the study
• To make a panel data analysis of the manufacturing firms listed in Centre for
Monitoring Indian Economy (CMIE) for a period of 5 years
• To study the variables affecting the profitability of the Indian firms
• To establish a relationship between the profitability and the variables affecting the
manufacturing firms
• To find out the relationship between profitability and size of the firm
• To find out the contribution of debtors days to the profitability of the firm
The inferences of the study are expected to be beneficial to the Indian
manufacturing firms in understanding the variables that influence their profitability. The
panel data analysis and group-wise weighted least squares analysis made in Indian
context are the contributions to the literature by the authors. The regression results are
able to predict the percentage improvement in profit that can be obtained by controlling
the number of days of debtors, number of days of inventory and creditors’ days and cash
conversion cycle.
The rest of the paper is organized as follows: Section 2 looks at the relevant literature.
The data and the variables are explained in section 3. Section 4 explains the empirical
analysis and its interpretation, by providing the results of descriptive statistics, correlation
and regression analysis. Conclusions are given in section5.
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2. LITERATURE REVIEW
Smith (1973) identified eight major approaches taken towards the management of the
working capital. Efficiency of working capital management is based on the principle of
speeding up collections as much as possible and slowing down disbursements as much as
possible. This working management principle, based on the traditional concepts of the cash
conversion cycle introduced by Richards and Laughlin (1980), is a powerful performance
measure for assisting how well a company is managing its working capital.
Gentry, Vaidyanthan and Lee(1990) develop a weighted cash conversion cycle, which
scales the timing by the amount of funds in each step of the cycle. Larger inventory reduces
the risk of a stock out. Trade credit may stimulate sales because it allows customers to assess
product quality before paying (Deloof & Jegers, 1996; Long, Malitz, & Ravid, 1993).
As a part of a study of the fortune 500s financial management practices, Gilbert and
Reichert (1995) found that account receivable management models are used in 59% of these
firms to improve WCM projects, while, inventory management models were used in 60% of
the companies. Shamsud and James (1996) analyze the content and process of turnaround
strategies in smaller manufacturing firms. Weinraub and Visscher (1998) observe a tendency
of firms with low levels of current ratios to have low levels of current liabilities. Shin and
Sonen (1998) found a strong negative relation between the cash conversion cycle and
corporate profitability for a large sample of listed American firms for the 1975-1994 periods.
Howorth and Westhead (2003) examined working capital management routines of a large
random sample of small companies in the UK.
Deloof (2003) investigates the relation between WCM and corporate profitability of
1,009 large Belgian non financial firms. From the studies conducted to identify the trends in
WCM and its impact on Mauritian small manufacturing firms, Pandachi, (2006) identify that
the working capital needs of an organization changes over time as does its internal cash
generation rate. Raheman and Nasr (2007) conducted a study to analyze the relationship
between WCM and profitability in case of Pakistani firms. The result shows that, there is a
strong negative relationship between variables of WCM and profitability of the firm. The
firms can increase their profitability by reducing investment on accounts receivable and
inventories to a reasonable minimum, indicated by the benchmarks for their industry (Teruel
& Solano, 2007).
The above discussion clearly implies the importance of working capital management
(WCM) in determining the firm’s success. The present work tries to identify the various
factors of working capital management influencing profitability of manufacturing firms in
India.
3. DATA AND VARIABLES
This study uses financial statements of executive summary, assets and liability
statements of manufacturing firms listed in Centre for Monitoring Indian Economy (CMIE)
for a period of 5 years (i.e. 2005-06 to 2009-10). The data was collected for 1211 firms and
the firms with the 1% outlying values for Debtors Days (DTRDAYS), Inventory Days
(INVDAYS), and Creditors Days (CTRDAYS) were left out. Thus the samples size consists
of a balanced panel set of 5990 firm year observations of 1198 firms.Profit before
depreciation tax accounts (PBDTA), the dependent variable, is taken as a proxy for
profitability. Table 1 presents the independent and control variables, notations and its
calculation methods used in the analysis.
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Table 1. Variables Used in the Analysis
No Variable Notations Calculation Method
1 Debtors Days DTRDAYS [accounts receivable * 365] / Sales.(It is
taken from executive summary of the firms)
2 Inventory Days INVDAYS [Inventories*365] / Cost of goods sold
3 Creditors Days CTRDAYS [accounts payable*365]/ Cost of goods sold.
(It is taken from executive summary of the
firms)
4 Cash Conversion Cycle CCC DTRDAYS + INVDAYS – CTRDAYS
5 Current Ratio CR Current Assets / Current Liability
6 Ratio of Current Liability CLTOTA Current Liability/ Total Assets
to Total Assets.
7 Financial Assets to Total FATOTA Financial Assets / Total Assets
Assets
8 Size SIZE Natural Logarithm of Total Assets
9 Assets Turnover Ratio ATR Sales/total asset
Debtors Days, Inventory Days, Creditors Days and Cash Conversion Cycle are used
as independent variables. CCC is used as the comprehensive measure of working capital as it
shows the time lag between expenditure for the purchase of raw materials and the collection
of sales of finished goods. CR, CLTOTA, FATOTA, SIZE and ATR are used as the control
variables.
4. DATA ANALYSIS AND INTERPRETATION
4.1 Descriptive Statistics
Table 2 shows the descriptive statistics. The manufacturing industry is having on an
average 22 % of profit for its sales and most of the firms included in the analysis show profit
of a 9%. The average CCC is 57.63 days (median is 49.45days), it shows two month’s time
for the cash conversion cycle. The firm receives the payment on sales after an average of
65.49days with median 51.26 days. It takes on average 81.83days (median is 58.27) to
convert the raw materials and sell the finished goods inventory and firms take on an average
105.21days (with median 64.20days) to pay purchases. The analysis of Indian manufacturing
firms shows that the firms less credit period to the customers in comparison with what they
are enjoying.
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Table2. Descriptive Statistics
Variables Mean Minimum Median Maximum Std. Dev
DTRDAYS 65.49 0.00 51.26 3174.30 90.00
INVDAYS 73.97 0.00 58.27 4584.80 100.26
CTRDAYS 81.83 0.00 64.20 4610.60 122.44
CCC 57.63 -2567.40 49.45 4498.50 130.85
CR 3.76 -1.28 2.26 1080.00 17.24
CLTOTA 0.31 -0.20 0.21 144.22 1.98
FATOTA .03513 -.00044 0.00053 56.27060 0.76002
SIZE 5.13 -3.22 5.07 12.43 1.71
ATR 1.30 0.00 1.02 384.74 5.29
PBDTA 131.59 -252.19 13.600 31057. 927.93
CR is the traditional measure of liquidity. It indicates the availability of current assets in
rupees for every one rupee of current liability. The industry has a high liquidity with the average
current ratio being 3.76. For manufacturing firms, the current liabilities are 31% of total assets. Sales
are 1.3 times the total assets employed. Financial assets employed in the firm are only an average of
3.5% of the total assets. The size of the company is calculated as the logarithm of total assets. The
mean value of ATR shows that sales of the firms are on an average of 1.3 times of the total assets. For
most of the manufacturing firms in India, the sales are equal to the total assets employed by the firm.
4.2 Correlation Analysis
Table3 presents correlation coefficients at 5% critical value (two tailed) (=0.0253) for all
variables considered. There is a negative relation between PBDTA and measures of working capital
management such as DTRDAYS, INVDAYS, CTRDAYS and CCC. This is consistent with the view
that, when we consider the variables independently, the time lag between the expenditure for the
purchase of raw materials and the collection of sales of finished goods can be too long, and that
decreasing this time lag increases profitability.
PBDTA shows a negative correlation with current ratio implies that profitability and liquidity
are inversely related. PBDTA shows a positive correlation with CLTOTA, FATOTA SIZE and ATR.
So, these variables have high influence on the return on assets. Size of the firm shows a negative
correlation with PBDTA.
Table3. Correlation Matrix
DTRDAYS INVDAYS CTRDAYS CCC CR CLTOTA FATOTA SIZETA ATR PBDTA
DTRDAYS 1.0000 0.0305 0.5610 0.1863 0.0133 0.0041 -0.0022 -0.0997 -0.0429 -0.0582
INVDAYS 1.0000 0.1715 0.6268 0.0347 -0.0148 -0.0066 0.0072 -0.0355 -0.0249
CTRDAYS 1.0000 -0.4185 -0.0532 0.0362 0.0065 0.0219 -0.0289 -0.0077
CCC 1.0000 0.0855 -0.0424 -0.0126 -0.0836 -0.0297 -0.0519
CR 1.0000 -0.0176 -0.0024 -0.0810 -0.0082 -0.0153
CLTOTA 1.0000 0.8990 -0.0372 0.9156 0.1056
FATOTA 1.0000 -0.0033 0.8954 0.1080
SIZE 1.0000 -0.0464 0.3355
ATR 1.0000 0.1058
PBDTA 1.0000
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4.3 Regression Analysis
Regression analysis is used to estimate the causal relationship between profitability
and the other chosen variables. The determinants of corporate profitability are estimated by
using group wise weighted least squares. This study uses panel data regression analysis of
cross-sectional and time series data. The specific forms of the models used for the linear
regression analysis are as follows:
ܲܣܶܦܤ௧ ൌ ߚ ߚଵ ܻܵܣܦܴܶܦ௧ ߚଶ ܴܥ௧ ߚଷ ܣܱܶܶܮܥ௧ ߚସ ܣܱܶܶܣܨ௧ ߚହ ܵܧܼܫ௧
ߚ ܴܶܣ௧ ߝ௧ … … … … … … … … … … … … … … … ሺ1ሻ
ܲܣܶܦܤ௧ ൌ ߚ ߚଵ ܻܵܣܦܸܰܫ௧ ߚଶ ܴܥ௧ ߚଷ ܣܱܶܶܮܥ௧ ߚସ ܣܱܶܶܣܨ௧ ߚହ ܵܧܼܫ௧
ߚ ܴܶܣ௧ ߝ௧ … … … … … … … … … … … … … … … ሺ2ሻ
ܲܣܶܦܤ௧ ൌ ߚ ߚଵ ܻܵܣܦܴܶܥ௧ ߚଶ ܴܥ௧ ߚଷ ܣܱܶܶܮܥ௧ ߚସ ܣܱܶܶܣܨ௧ ߚହ ܵܧܼܫ௧
ߚ ܴܶܣ௧ ߝ௧ … … … … … … … … … … … … … … … … ሺ3ሻ
ܲܣܶܦܤ௧ ൌ ߚ ߚଵ ܥܥܥ௧ ߚଶ ܴܥ௧ ߚଷ ܣܱܶܶܮܥ௧ ߚସ ܣܱܶܶܣܨ௧ ߚହ ܵܧܼܫ௧
ߚ ܴܶܣ௧ ߝ௧ … … … … … … … … … … … … … … … … … … … … … . … ሺ4ሻ
Where
ߚ = Intercept of the equation
ߚଵ , ߚଶ , … . . ߚ = Coefficient of the variables
ε = Error tem
i = Number of firms, 1 to 1198.
t = Time period, 1 to 5.
Four regression models are modeled to study the impact of the independent variables
individually.
The pooled ordinary least squares (OLS) regression model shows heteroskedasticity.
Because of heteroskedasticity, t–test and F – test fail. To counter this problem, it is
recommended, the analysis is conducted by using Weighted Least Squares (Wooldridge,
2004). It is a generalized least squares technique using weight. We conduct group wise
weighted least squares. Weights are based on per unit error variance. The analyses are
conducted using Gretl software. Table 4 shows the results of regression analysis.
Regression model (1) is estimated with DTRDAYS being considered as independent
variable. The coefficient of DTRDAYS is negative and implies that a decrease in the number
of days of accounts receivable by one day is associated with an increase of profitability by
3.195% and it is significant with 99 percentage level of significance.
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Table 4. Group wise Weighted Least Squares
Variable Regression model Regression Regression Regression
(1) model(2) model(3) model(4)
Constant -227.959 -224.610 -229.190 -227.531
(0.0000***) (0.0000***) (0.0000***) (0.0000***)
DTRDAYS -0.0319540 ------ ------- -------
(0.0015***)
INVDAYS ------- -0.0800197 ------- -------
(1.73e-014***)
CTRDAYS ------- --------- -0.0284547 --------
(0.0002***)
CCC ------- ------- -------- -0.0279363
(0.0004***)
CR 0.128708 0.243744 0.0952759 0.186840
(0.0003***) (0.0002***) (0.0775*) (0.0019***)
CLTOTA 17.2429 16.7878 19.2520 15.7647
(8.79e-013***) (3.35e-013 ***) (6.58e-014***) (1.57e-011***)
FATOTA -4.25933 -3.13904 -4.04744 -3.75683
(0.0282**) (0.1400) (0.0537*) (0.0604*)
SIZE 51.2588 51.3723 51.5616 51.0355
(0.0000***) (0.0000***) (0.0000***) (0.0000***)
ATR 5.59321 4.78390 5.10953 5.60711
(1.72e-024***) (1.18e-019***) (1.51e-023***) (1.36e-029***)
R2 Value 0.349020 0.349369 0.349801 0.347296
Adj. R2 0.348367 0.348717 0.349149 0.346641
F test 534.6262 535.4481 536.4675 530.5806
(Sig.) (0.000000) (0.000000) (0.000000) (0.000000)
***
The variable with 99 percentage level of significance.
**
The variable with 95 percentage level of significance.
*
The variable with 90 percentage level of significance.
In regression model (2), profitability and number of days of inventories (INVDAYS)
has negative relationship with 99 percentage level of significance. This means that the
increase in number of days of inventory will lead to increase in profitability and vice versa.
The regression model (3) shows that CTRDAYS is inversely related to profitability.
The relationship is also found significant at 99 percentage. Long number of days of accounts
payable led the firm to a low level of profitability and vice versa. An alternate explanation is
less profitable firms wait longer to pay their bills. The cash conversion cycle (CCC) is taken
as an independent variable in regression model (4). The coefficient of CCC is negatively
related to profitability with 99 percentage level of significance. A decrease in the cash
conversion cycle by one day is associated with an increase of profit by 2.79%.
In all regression models PBDTA is positively related with CR, CLTOTA, SIZE and
ATR with 99 percentage significance. FATOTA is negatively related to PBDTA at 95%
significance level. The results of regression models (1) to (4) suggests that the managers can
increase the corporate profitability by decreasing Debtors Days (DTRDAYS), Creditors Days
(CTRDAYS), Inventory Days (INVDAYS), and Cash Conversion Cycle (CCC).
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8. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
6510(Online), Volume 4, Issue 1, January- February (2013)
The natural logarithm of the total assets is taken as a proxy for the size of the firm. The size
of the firm is found to be significantly positively related to profitability of the firm. This
indicates that higher the size of the firm the profitability increases. A 1% increase in SIZE is
associated with an average 0.51% increase in profitability.
The F test proves that there is no possibility of getting zero values for all regression
coefficients of variables or there is a possibility that at least one regression coefficient will
get more than a zero value. The F test shows that the model has the possibility of predicting
PBDTA with a high significant level since the p value is (0.00). The adjusted R2 of the
regressions are 35%, means that 35% of variability in variances are explained by the model.
5. CONCLUSION
Most firms have a large amount of cash invested in working capital. It can therefore
be expected that the way in which working capital is managed will have significant impact on
the profitability of firms. The descriptive and regression analyses have identified critical
management practices and are expected to assist mangers in identifying areas where they
might improve the financial performance of their operation.
The study has been conducted on manufacturing industries, irrespective of the
business differences. The findings of the analysis show a significant negative relationship
between profitability and debtors’ days, inventory days, creditors’ days and cash conversion
cycle. The results suggest that the managers can create value for their share holders by
reducing cash conversion cycle. The negative relationship between creditors days and
profitability suggest that long number of days of accounts payable leads the firm to a low
level of profitability and vice versa.
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