Working capital management, board structure and Tobin's q ratio of Thai listed firms

PurposeThis study investigates whether the integration between working capital management (WCM) and the structure of a firm's board of directors impacts its Tobin's q ratio. The sample set consists of 319 Thai listed firms with 3,190 firm-year observations from 2010 to 2019.Design/methodology/approachThe two-step generalized method of moments (two-step GMM) model is employed to address endogeneity.FindingsThe empirical results show that having both (1) a high level of net working capital holdings, a long period of net trade cycles or using an aggressive policy in working capital investment and (2) a more diverse board of directors decrease a firm's Tobin's q ratio. Conversely, when a firm's managers employ an aggressive policy for their working capital financing and the board structure of their firms is highly diverse, the firm's Tobin's q ratio increases. This indicates the appropriateness of some WCM policies is dependent on the characteristics of a firm's board of directors. Thus, the different integration between WCM and board structure may elicit dissimilar outcomes for a firm's Tobin's q ratio.Originality/valueTo their knowledge, the authors are the first to investigate the influence of the integration between WCM and board characteristics on Tobin's q ratio.

Relationship between Recruitment Information System and Management of Human Capital: A case of James Finlay Limited, Kenya

Technological advancement in the 21st century has unlocked possibilities in all spheres of existence. Lately, with the advent of the Covid-19 pandemic, the workplace has been transformed, and businesses are operating in unchartered waters. A human resource management information system is believed to guarantee a more efficient and effective way of managing human capital in organizations. However, its implementation has not effectively transformed from the manual method of running the human resource functions. Many organizations are, therefore, still stuck with the traditional way of managing human capital. On this basis, this study sought to establish the effectiveness of recruitment information systems in human capital management. The study was anchored on the resource-based theory of the firm and used a cross-sectional research design with a target population of 458 employees. A sample size of 213 respondents was determined while stratified and simple random sampling techniques were adopted to select the respondents for the study. A structured questionnaire was used to obtain primary data from the respondents. The reliability of the questionnaire was tested through a pilot study where an average Cronbach alpha coefficient of 0.89 was obtained. The validity of the questionnaire was ensured by doing a detailed literature review and consultation with subject experts. Descriptive statistics (mean and standard deviation) were used to summarize data, while correlation analysis was used to test the study's hypothesis. Results were presented using tables. The findings established that recruitment information systems had a strong positive relationship (R = 0.873, β1 = 0.518, R2 = 0.762, p = 0.05) with human capital management, indicating that James Finlay Limited should invest more in Recruitment information systems. The study recommended that the company improve the recruitment information system to enhance the job interview process and improve the system to allow efficiency in tracking job applications and appointment processes.

The effect of working capital management and credit management policy on Jordanian banks’ financial performance

This study investigated the impact of Working Capital Management (WCM) and Credit Management Policy (CMP) on the Financial Performance (FP) of Jordanian banks (JB). The study data were obtained from 16 Jordanian banks listed on the Amman Stock Exchange (ASE) between 2017 and 2020. The study used panel data to investigate the relationship between the two independent variables, WCM and CMP, and the dependent variable FP; 64 financial reports to Jordanian banks were analyzed to measure this relationship. To test hypotheses, multiple regression was used. The study found a statistically significant relationship between WCM and FP, and the independent variable was able to explain 34.1% of the changes that occur in the dependent variable. In addition, the outcome approved that there is a statistically significant relationship between CMP and FP. Furthermore, CMP explained about 41.8% of changes in the dependent variable. The findings of this study indicate support for the banks’ performance; a bank may need to lengthen client credit terms, prolong the cash transfer cycle, and require a more extended payment period when judging on WCM. Acknowledgment The publication of this research has been supported by the Deanship of Scientific Research and Graduate Studies at Philadelphia University – Jordan.

Responsible Investing With Venture Capital

More often than not, responsible investing (RI) is associated with “patient” capital and sustainable development. Venture capital (VC), by its objectives to invest in projects with very high returns and exit quickly the market, is rightly considered as “impatient” capital, and as such, it is a less likely candidate to contribute to sustainability. This chapter advances the argument that VC can indeed contribute to sustainability, should it adopt the ESG factors into its investment criteria. This is illustrated using the case study of a Canadian VC firm, the Cycle Capital Management (CCM). The latter uses strict ESG criteria and rigorous decision-making mechanisms in the screening, evaluation, and the choice of highly lucrative and innovative projects with the aim to contribute to the Canadian economy's sustainability through its efforts to reduce the environmental footprint of its investments. Policy makers and regulators should develop policies that promote the growth and development of venture capital, should they care about sustainability and value creation.