Determinants of working capital management before, during, and after the global financial crisis of 2008: Evidence from Malaysia

2016 ◽  
Vol 50 (5) ◽  
pp. 461-468 ◽  
Author(s):  
Razali Haron ◽  
Naji Mansour Nomran
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Financial Crisis Of 2008 ◽  
The Global Financial Crisis

Working capital management during the global financial crisis: the Australian experience

2014 ◽  
Vol 6 (3) ◽  
pp. 332-351 ◽  
Author(s):  
Vikash Ramiah ◽  
Yilang Zhao ◽  
Imad Moosa
Keyword(s):  
Financial Crisis ◽  
Management Practices ◽  
Global Financial Crisis ◽  
Capital Expenditure ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Content Type ◽  
General Decline ◽  
The Global Financial Crisis

Purpose – This paper aims to document the measures taken by Australian corporate treasurers in the areas of cash, inventory, accounts receivable, accounts payable and risk management to survive the global financial crisis (GFC). Design/methodology/approach – Using qualitative techniques like interviews and a survey questionnaire, this paper summarises the various measures adopted by working capital managers. Findings – The results show that more than half of the participants in the survey altered their working capital management practices during the crisis. Capital expenditure was curtailed, as they aimed at preserving their cash levels while reducing inventory levels. Credit worthiness of institutions became more important, and there was a general decline in credit availability. The results also show that Australian working capital managers exhibit behavioural biases, particularly overconfidence. Originality/value – It is the first paper that uses open-ended questions to capture the effects of the GFC on working capital management in Australia.

scholarly journals Global Financial Crisis, Working Capital Management, and Firm Performance: Evidence From an Islamic Market Index

SAGE Open ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 215824402110157
Author(s):  
Minhas Akbar ◽  
Ahsan Akbar ◽  
Muhammad Umar Draz
Keyword(s):  
Firm Performance ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Generalized Method Of Moments ◽  
Market Performance ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Market Index ◽  
The Impact

This research investigates the impact of working capital management (WCM) on the profitability and market performance of firms that constitute an Islamic market index (Karachi Meezan Index [KMI-30]) in Pakistan during 2002–2013. The data have been divided into three parts, that is, preglobal (2002–2007), during (2007–2008), and postglobal financial crisis period (2008–2013), to examine the proposed relationship in different macroeconomic settings. Net trade cycle (NTC) and its components are used to measure the WCM efficiency, while NTC square is used to proxy the impact of excessive holdings of working capital on corporate performance. The econometric models are calculated in a generalized method of moments (GMMs)-based regression environment to ensure the robustness of empirical outcome. The results reveal that, as opposed to conventional businesses, KMI-30 firms are more ethical in their short-term financial management. Besides, such firms adopted a conservative WCM policy during the global financial crisis of 2007–2008. Furthermore, we confirm the presence of a concave relationship between working capital levels and firm performance as NTC is positively, whereas NTC square is negatively, related to firm performance. This article makes a significant contribution to the extant literature as it evaluates the impact of WCM on the profitability and market performance of Islamic market indexed firms under varying macroeconomic conditions.

Working Capital Management and Firm Performance Relationship: An Empirical Investigation of Australasian Firms

2020 ◽  
Vol 23 (03) ◽  
pp. 2050026
Author(s):  
Umar Nawaz Kayani ◽  
Tracy-Anne De Silva ◽  
Christopher Gan
Keyword(s):  
New Zealand ◽  
Firm Performance ◽  
Financial Crisis ◽  
Significant Relationship ◽  
Global Financial Crisis ◽  
Empirical Relationship ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Cash Conversion Cycle

This paper examines the empirical relationship between working capital management (WCM) and firm performance (FP) for Australasian publicly listed firms. Australia and New Zealand are attractive investment destinations due to their business friendly environments. The past two decades have seen increased academic attention in studies linking WCM and FP across various parts of globe. The empirical relationship between WCM-FP has not been sufficiently examined in regards to Australian and New Zealand firms. This study measures the role of WCM during the 2008 global financial crisis in both Australia and New Zealand firms. This study uses System General Method of Moments to address the endogeneity problem in order to reduce the possibility of biased results. The results show that WCM has a significant relationship with FP. More specifically, the Cash Conversion Cycle (CCC) and the Inventory Conversion Period (ICP) exhibit negative relationships with FP indicating that a reduction in the CCC and the ICP help to improve FP in Australasian firms. However, in the case of the Average Collection Period (ACP) and the Average Payment Period (APP), the results vary between both countries. In Australia, the ACP has no significant relationship, whereas APP has a positive relationship. This is contrary in the case of New Zealand firms. Another important finding is that firms in both markets were relatively efficient collecting their receivables during the 2008 global financial crisis period. These findings provide new empirical evidence that WCM matters for improving FP in Australasian firms.

Sign in / Sign up

Export Citation Format

Share Document